Plug Power launches first-ever spot pricing for liquid green hydrogen
US-based hydrogen producer Plug Power has launched spot market pricing for liquid green hydrogen.
CONCEPT: Green hydrogen production plant. Getty Images
“Hydrogen buyers now have the freedom to purchase liquid green hydrogen from Plug’s production plants on-demand and without the limitations of long-term take-or-pay agreements,” the company said in a statement.
The pricing mechanism will be applied to green hydrogen produced at all of its plants across the US, which have a combined liquid hydrogen production capacity of approximately 45 mt/day.
The company confirmed that it has entered into spot pricing agreements with several buyers, including an industrial gas company. It has not yet disclosed whether any of these agreements involve direct hydrogen bunker buyers.
It has not yet disclosed whether any of these agreements involve direct hydrogen bunker buyers.
However, earlier this year, Plug Power signed a green hydrogen offtake agreement with Allied Green Ammonia, which is developing a green ammonia plant to supply the shipping industry, among other sectors. Spot pricing for green hydrogen feedstock could directly influence the cost of green ammonia marine fuel supplied from Allied Green Ammonia’s upcoming plant.
Spot pricing is expected to improve the affordability and accessibility of green hydrogen, and accelerate its adoption across industries, Plug Power chief executive, Andy Marsh said.
“In five years, we anticipate most buyers will tap into the spot market to benefit from the flexibility it offers them,” Marsh added.
By Konica Bhatt
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