The price of green hydrogen multiplies by eight that of gas

Numerous companies and institutions see in the green hydrogen a future substitute for natural gas. And it is precisely Castellon one of the territories in which there is greater expectation. The main economic activity of the province, the ceramicsuses large amounts of natural gas to carry out their processes, and for this reason there are various projects located around the tile cluster aimed at this objective. One of the most notable is the investment that bp and Iberdrola are preparing in the Serrallo de Castelló industrial estate. But this technology is still in an experimental phase, and there are many steps to take until it is really a reliable alternative.

The most obvious verification comes through the markets. The European Energy Exchange, considered the main energy reference exchange in Europe, has created the iHydrix index, in which, from now on, the prices of green hydrogen are reflected. this premiere confirms what has been feared for a long time years: its price is much higher than that of natural gas.

Result of the premiere

The first indicators are located in 231.6 euro per megawatt hour. A figure that would not be so far-fetched if compared to gas last summer, when it reached peaks of 345 euros. Instead, it is now at stabilized levels, and these days it is trading on the European reference market – the TTF of the Netherlands – at less than 40 euros. Hydrogen costs eight times as much, and for now it is not in a position to be competitive.

“A Long Way”

The general secretary of the association of ceramic manufacturers (ascer), Alberto Echavarria, He referred to this premiere of hydrogen in the markets. He commented that from the sector “We already have certainties”, to add that there are many challenges to overcome.

“Not only do we have to overcome the technological barrier, we also have to overcome an economic barrier of almost nine times the current price,” he mentioned, so the substitution of natural gas for hydrogen will be “a very long way”. He also warned that this price of hydrogen “forces many calculations to be reviewed and that it can leave many speechless.”

question marks

It will be the future that determines the viability of this technology. On the one hand, we will have to see whether manufacturing in large quantities will help lower the price, while there is another challenge related to the technological modifications linked to this new source.