Pricing model concepts for low carbon hydrogen and ammonia markets

Why it Matters!?

As market players accelerate the energy transition towards lower-carbon commodities, while ensuring energy security. The price discovery process can be both alluring yet opaque amidst a developing market.

Learning to properly navigate the price discovery process of early-stage projects, and offtake agreements is crucial to mitigating ones risk and for developing a commoditized market.

How will pricing be structured for low-carbon hydrogen and ammonia offtakes? What process and tools should project developers and investors have in place to better evaluate agreement risks, and increasing confidence in the marketplace? Santiago Canal Soria, Hydrogen Pricing Analyst, S&P Global Commodity Insights, explores some of the current challenges delaying the development of the market making process, and the tools available to frame new investment opportunities.