ArcelorMittal It plans to invest more than one billion euros to decarbonize some of its steelhead in Gijón using green hydrogen instead of coal. However, the company has made it clear that it will initially use other fossil-derived gases. HE hydrogen to be “commercially sustainable”that is, until its price is “competitive” relative to natural gas. There is a long way to go for this. This week, the first hydrogen index based on market-negotiated prices was launched, and renewable hydrogen costs almost eight times that of natural gas.
The European Energy Exchange (EEX) is considered the main energy exchange in Europe and this week launched the Hydrix index. weekly price information green hydrogen traded in the marketstaking into account the supply of the energy sector and the demand of the industrial sector.
“Hydrix is closing a price signal gap and is critical to market growth and further investment in the hydrogen economy. With an index based on commercial hydrogen market prices, a reference point can be used for investment decisions. “Thus, we pave the way for a carbon-neutral future of the energy industry,” said Peter Reitz, CEO of EEX.
The first Hydrix index released this week gives the price of green hydrogen at €231.6 per megawatt hour for week 19 of the year, €226.2 for week 20, €222.8 for week 21 and €228.164 for week 22 of the year. The first global price reference for green hydrogen will not be overly cumbersome compared to natural gas prices, where it hit 340 euros last summer. However, it is currently at levels before the occupation of Ukraine, and these days natural gas is trading at less than €30 on the European reference market – the Dutch TTF. In other words, the price of green hydrogen is almost eight times that of natural gas.
Companies like ArcelorMittal they are very aware of the development of green hydrogen price. The multinational steel company plans to finalize an investment of more than one billion euros in the coming weeks to decarbonize part of the Gijón steel head, replacing one of its two blast furnaces with a direct iron reduction plant. ore using a hybrid electric arc furnace powered by green hydrogen and renewable energy (DRI system). However, the DRI plant project is expected to initially use natural gas as a reducing agent until green hydrogen “becomes commercially sustainable”. its price is “competitive” relative to the product. natural gas.