Spain already has its own price reference for green hydrogen. The organized gas market, MIBGAS, has released the first Iberian index of the price of renewable hydrogen, with a price of 5.85 euros/kg (148.36 euros/MWh).
A 50 MW electrolyzer plant model has been chosen located in the Iberian Peninsula, with an associated renewable installation (photovoltaic + wind) directly connected, from which a separate Levelized Cost of Electricity (LCOE) for photovoltaic and wind is obtained. The useful life of the plant will be 25 years.
The publication of this new price signal, which will be updated weekly, has been created to accommodate all wholesale market actions within the field of renewable gases.
The working group created at the beginning of this year and led by MIBGAS has participated in the development of the methodology to calculate a reference price for renewable hydrogen, which reflects a reliable, robust, non-manipulable and representative signal, based on costs.
The MIBGAS IBHYX reflects the production cost of renewable hydrogen, that is, the minimum price at which a producer is willing to sell to obtain the expected profitability or, in other words, the price signal of the hydrogen supply (ask). renewable produced in the Iberian Peninsula in a typical electrolysis plant.
This signal represents the levelized cost of production of renewable hydrogen in accordance with the criteria established in the delegated acts of the European Union for the production of hydrogen RFNBO (Renewable Fuel of Non Biological Origin).
The methodology used has been based on production costs to, in a first step, define and combine criteria to obtain the production price in Iberia of this energy vector, which is what the MIBGAS IBHYX index represents. The next step will be to know the demand price (bid), which an offtaker demanding renewable hydrogen is willing to pay. The gap or differential between these two prices will determine the degree of liquidity in the market.
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