Declining Green Hydrogen Prices in the European Market Amidst Bearish Trends

Texas (USA): The Green Hydrogen prices dampened throughout the Western market due to a bearish trend in Europe and America. These developments were charged by similar market dynamics as there was low demand from the downstream industry and Addition input production costs. Moreover, in the American market, there has been a similar reduction in the prices of Green Hydrogen. A decline in demand from the downstream fuel industry can explain this trend. Furthermore, the fed reserve added decided to hike the interest rate from 5.25 to 5.5 as of this month. In Addition, the PMI value was stated at 49, indicating a contraction of the manufacturing sector, creating a pessimistic market view. These similar market dynamics are driving green hydrogen prices in the Western market.

The prices of Green Hydrogen have shown declining trends in the European market as prices reduced by -1.5% as of July. This trend can be justified by a decline in the prices of Natural Gas, which led to lower LNG prices and affected input production costs negatively. Furthermore, high-interest rates and economic uncertainty continue to curb the purchasing power of end-stream industry consumers, so demand from the fuel industry declined.

In the American market, the prices of Green Hydrogen have shown a negative trend as of July, and the prices decremented by 4%. This development is instigated mainly due to the high material level in the market, which led sellers to offer discounts. Furthermore, the slow recovery in natural gas prices has led to an overall lowering of green Hydrogen production costs. Additionally, there has been weak demand from the downstream industry fuel industry.

As per ChemAnalyst Database, ‘It is expected that the quotes of Green Hydrogen are likely to increase in Netherlands market, this is mainly due to Dutch government has announced an increased subsidy for the production of hydrogen from renewable energy source mainly Green Hydrogen, of USD 1.1 billion in 2024 and 3.9 billion euros in 2025 as Netherland plans to produce 4 gigawatt of green hydrogen in 2030, these development are likely to create positive market sentiments. Green Hydrogen prices are expected to increase in the upcoming months in the US market because of rising demand from the downstream Biofuel industry, and the Department of Energy delivered a Notice of Intent for H2Hubs. It will create a Green Hydrogen network in the High energy sector as the US target of a carbon-free grid by 2035 and zero emission till 2050.