Spot prices for liquid green hydrogen become a reality
Plug Power, a U.S.-based hydrogen technology company, has announced the launch of the world’s first spot pricing program for liquid green hydrogen. This innovative solution allows customers to purchase hydrogen on an ongoing basis without the need to sign long-term “take-or-pay” contracts.
A New Pricing Model for Greater Flexibility and Transparency
The American giant’s new program enables flexible hydrogen transactions based on current demand. Every Thursday, S&P Global Platts will publish the updated hydrogen price for the following week. This price will reflect current supply and demand indicators at Plug Power’s plants.
Customers with spot agreements will be able to purchase hydrogen at the specified rate, allowing them to adjust to dynamic market changes. The new system eliminates the risks associated with long-term contracts and enables companies to respond quickly to changing market conditions. This is particularly important in light of the growing interest in green energy.
Three Production Plants with a Total Capacity of 45 Tons Per Day
The spot pricing program includes three Plug Power production facilities:
- Woodbine, Georgia
- Charleston, Tennessee
- St. Gabriel, Louisiana
Their combined production capacity is 45 tons of liquid hydrogen per day. This makes Plug Power one of the market leaders in North America. Notably, the company is the only global producer of liquid green hydrogen on a commercial scale.
With the new pricing model, these plants can better manage their resources and adjust production to current market demand. This could lead to price stabilization and increased profitability.
Benefits for Industry and Energy Sectors
The introduction of the spot pricing model will optimize costs and enhance flexibility for buyers such as:
- The chemical and refining industries
- Energy system operators
- The transport and logistics sector
With this new system, companies can avoid long-term commitments and flexibly manage hydrogen purchases according to changing needs. In the context of global carbon neutrality goals, this could be a key element in reducing CO₂ emissions in industry and transportation.
Future Strategy
Andy Marsh, CEO of Plug Power, predicts that within five years, the spot pricing model will become the standard for most hydrogen buyers:
“With this initiative, we are increasing trust and transparency in the industrial hydrogen market. We believe that in the coming years, most buyers will take advantage of the flexibility offered by the spot market.”
In January 2025, Plug Power secured a $1.66 billion loan guarantee from the U.S. Department of Energy (DOE) to expand its hydrogen infrastructure. Planned investments include the construction of six additional production plants.
Plug Power is not only strengthening its position in the U.S. market but also developing projects in Europe and Asia. The company’s goal is to create an international green hydrogen supply network that will help reduce emissions on a global scale.
Source: offshore-energy.biz