Novatek would like to understand more extensively how the competitive landscape of hydrogen production capacity and -technology will evolve in (Western) Europe over the next decade and which pricing instruments and pricing formulars are most suited to sell Russian produced low carbon hydrogen into Europe.

The assignment was structured in three work packages (WPs). In WP1 the analysed the expected  hydrogen demand per sector in Germany and Europe over the next years was analysed. In WP2 the input prices and price components for low carbon and green hydrogen production were assessed and analysed, including the impact of CO2 prices on power prices for Germany. In WP3 it was investigated on what commodity indexation i.e. gas and power low carbon hydrogen can be priced and if certain industry sectors require a different pricing base.

The customer received a detailed overview of the hydrogen demand projections per industry sector in Germany. He understands which cost components and input parameters will drive the cost of low carbon hydrogen in the future in Germany. The customer was provided with input and recommendations for the development of a suitable price indexation for low carbon hydrogen in Germany.

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Andreas Gelfort
Senior Consultant