Efforts to increase price transparency in the North American hydrogen market are intensifying. Companies like Plug Power and H2B2 Electrolysis Technology are redefining their marketing model to attract buyers in the key sectors of ammonia, mobility and power generation.
Plug Power, a major player in the sector, now offers weekly supplies of liquid hydrogen at 10 USD/kg. These offerings, available at its Woodbine, Georgia, and Charleston, Tennessee, facilities, mark a departure from traditional models. The product, with a purity of 99.999%, complies with the SAE 2719 standard for fuel cells. Sanjay Shrestha, president of Plug Power, emphasizes that this model without long-term contract constraints makes it possible to democratize access to hydrogen.
Pedro Pajares, CEO of H2B2 Electrolysis Technology, for his part announced the availability of “green” hydrogen produced as part of his SoHyCal project at 30 USD/kg, from their site in California. This offering reflects the complexity of electrolysis processes and the company's commitment to promoting sustainable energy solutions.
A strategic evolution of the market
Price transparency could transform the dynamics of the hydrogen market, long criticized for its opacity. According to Platts, prices for hydrogen fuels for fuel cell vehicles reached $34.70/kg in California in early December, more than double 2021 levels. The rise is attributed to supply tensions, funding disparities and growing demand.
One-off offers vary depending on the volume and type of hydrogen. For example, in California, hydrogen gas prices range between 13 and 14 USD/kg for volumes less than 5,000 kg per month. Public transport operators and logistics companies using hydrogen fuel cells have access to prices between USD 8 and USD 15/kg, according to industry sources.
A revisited business model
Plug Power and other players want to transform the market by offering flexible and transparent solutions. By eliminating the constraints of take-or-pay agreements, the company hopes to appeal to a wider range of customers, while setting new standards in hydrogen distribution.
“Historically, hydrogen pricing was opaque, and its supply required restrictive long-term agreements. This model must evolve to enable the growth of hydrogen-related applications,” said Sanjay Shrestha. With the availability of a delivery volume of up to one trailer per day, Plug Power aims to transform interactions with buyers.
Broader adoption prospects
The transition to increased transparency could also boost the competitiveness of hydrogen compared to other energy sources. By offering clear and competitive prices, producers hope to accelerate the adoption of this energy solution in various industrial and public sectors. If these initiatives become widespread, they could lay the foundations for a more sustainable market, based on open and balanced trade.
Efforts to standardize prices and democratize access to hydrogen are part of a long-term vision aimed at consolidating the role of this energy as a pillar of the energy transition.
