L R AS Published on Monday 20 September 2021 - n° 374 - Categories:electricity companies
Soaring electricity and CO2 prices are already making green hydrogen competitive
Gas prices are rising exponentially, not only in European markets, but also in America and Asia,
which means that it is a global problem. There is more gas consumption than production. As a result, future gas prices are also rising
The simultaneous increase in carbon prices, especially in Europe, could become another source of concern for large energy consumers, exposing them to serious financial problems.
In the short term, green hydrogen is not available, but if we consider the current gas price and add it to the carbon price, we can already say that green hydrogen is competitive
The almost continuous rise of electricity does not seem to stop. It is changing the global economy, and could create financial difficulties in energy-intensive industries. Above all, it shows that the world has not switched to renewable energy fast enough. We remain dependent on gas
The UK and Italy, which currently have the highest energy prices, are the most dependent on gas supplies. France, a priori well protected by its huge fleet of nuclear power plants, is also seeing electricity prices rise significantly. About 25% of French electricity is produced from gas and other sources. Therefore, gas andCO2 prices also have an impact on the energy market,
Electricity futures for 2031 are currently sold at around €30/MWh. This is an excellent opportunity for large energy consumers. They could sign very profitable ten-year PPAs
All the companies that have already signed PPAs in the last few years are now saving a lot of money compared to others who are facing a price of €150/MWh. Eighteen months ago, at the time of the first Covid crisis, electricity prices were at historic lows of
Contract holders complained then that their PPA contracts were priced at €40 per MWh. Now they are happy about it. Those who have no price protection are subject to the brutal increase without limit
Some advocate using renewable energy to produce hydrogen to replace gas
PV Magazine of 17 September 2021
Editor's note: Using hydrogen is always possible but currently irrelevant! For this, renewable energies must be available. However, what will be lacking or will become more expensive are panels. Indeed, the Sino-American war has already shifted the problem. It no longer makes sense to lose energy by switching from electricity to hydrogen, but to use green electricity for consumption. By saving as much of this electricity as possible!