Ammonia-to-hydrogen production in the Northwest Europe hopped to its new high, breaking 8-week record

The ammonia prices have been significantly registering a hike along with the spike in the production of ammonia-to-hydrogen.  However, the other forms of hydrogen production remain unaltered.

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The prices for ammonia-to-hydrogen surged by € 0.09/kg compared to the prices a week ago standing at €4.11/kg on August 17, 2023. This happens to be the highest price for ammonia-to-hydrogen compared to the preceding two months. Also, the price assessment rallies by €0.27/kg in comparison to mid-June, which witnessed the most considerable slump in recent years.
 
Considering the insignificant movement in the values of wholesale compared to its recent amplifying trend, the prices for baseload electrolyte saw a stuttering downslope trajectory, as well. The prices were recorded at €6.37/kg, slipped by €0.02/kg.

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Furthermore, low carbon hydrogen, generated through steam methane reforming (SMR) coupled with carbon capture and storage (CCS), followed a trajectory akin to baseload electrolysis, experiencing a marginal decrease of only €0.01/kg over the week, resulting in an assessment of €3.34/kg.

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Despite the waned demand from the downstream sector, global ammonia prices continued upping the price trajectory taking down to tight market condition.

Disruptive ammonia production-related activities in Asia lead to palliation of the ammonia supply. However, market participants have indicated that this development has had minimal effect on pricing.

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European region hunched towards the imports of Ammonia instead of domestic production slated to increased production cost. However, the contracted volumes seem to cover the imported volume.

According to Procurement Resource, ammonia prices rose due to increased production of ammonia-to-hydrogen, while other hydrogen methods stayed steady. Ammonia-to-hydrogen hit €4.11/kg, up €0.09/kg from last week and €0.27/kg from mid-June. Asian production disruptions affected supply, with minimal pricing impact. Europe's ammonia import shift is balanced by contracted volumes, mitigating cost concerns.