Ammonia-to-hydrogen assessment falls in value as gas, ammonia markets both bearish

LONDON(ICIS)–The ICIS Ammonia-to-hydrogen Northwest Europe assessment posted solid losses during week 41, however falling gas prices meant domestic hydrogen production costs remained at a discount to imported hydrogen from ammonia.

Ammonia-to-hydrogen production costs on breakeven basis fell to be assessed at €11.78/kg of hydrogen on 13 October, a loss of over €0.50/kg on a weekly basis, ICIS data showed.

The drop in ammonia prices for northwest Europe came as some production operations on the continent resumed despite poor demand.

As the same time, natural gas pricing in Europe posted steady losses during the trading week as relatively weak demand allied to robust supply from the Norwegian Continental Shelf as well as LNG volume arrivals remaining elevated.

As such, hydrogen production via gas fell in value at a faster pace due to the steep falls on the European gas hubs, maintaining the discount to ammonia-based imported hydrogen production costs.