North American hydrogen producers are working to increase price transparency to attract buyers across the ammonia, mobility and power generation sectors, two suppliers said in recent interviews with S&P Global Commodity Insights.

Plug Power began offering weekly spot hydrogen availabilities at $10/kg for liquid hydrogen available for pickup, expiring Dec. 20 from their Woodbine, Georgia, and Charleston, Tennessee, facilities, President Sanjay Shrestha said Dec. 12.

H2B2 Electrolysis Technology, a global leader in renewable 'green' hydrogen and operator of the 1.2 ton/day SoHyCal Project in California, is offering hydrogen on a spot basis at $30/kg, available for pickup at their facility gate, CEO Pedro Pajares said Nov. 27.

The move toward greater price transparency in the North American market in particular is becoming an important trend in the hydrogen and ammonia markets. Participants recognize the benefits of transparent information for securing competitive offtake agreements, optimizing contract structures to balance risk and pricing, and ultimately commissioning projects.

Platts, part of S&P Global Commodity Insights, last assessed pump prices for hydrogen fuel cell vehicles in California at $34.70/kg on Dec. 2, more than double 2021 levels due to record-high prices at the pump, supply issues, funding disparities, and other issues.

"My spot price along the US Gulf Coast for gaseous SMR-based hydrogen ranges from $9 to $11.50/kg for about 2,500 kg a month, at the gate, coming from either two major industrial gas producers in the region," a merchant seller said.

Spot hydrogen offers in California have been heard at $13-$14/kg, for volumes below 5,000 kg per month and depending on if gaseous or liquid hydrogen, a seller said.

Transit agencies and trucking companies operating hydrogen fuel cells have purchased hydrogen at $8-$15/kg, according to sources.

Adapting hydrogen marketing model

Plug Power is planning to allow qualified end-users to buy hydrogen as needed from its three plants, free from the limitations of long-term take-or-pay agreements, Shrestha said.

"Historically, hydrogen pricing has been opaque, and procurement has often required long-term offtake agreements with restrictive terms. For the hydrogen industry and its applications to scale, the approach to pricing and distribution must change," Shrestha said.

The spot availability is up to one trailer per day with the minimum hydrogen purity of 99.999% and fuel cell grade SAE 2719 compliant.

This represents a major change in customer interaction with the market.

"We hope other market participants will follow our lead to help create a more transparent and widespread hydrogen market," Shrestha said.