- Pexapark’s new daily updated reference prices aim to unlock the full potential of the emerging green hydrogen and ammonia market and provide transparency for fuels produced from renewable electricity
Zurich, 10th October 2023 — Pexapark, a specialist price intelligence, software and advisory services provider in renewable energy, is launching an innovative price benchmarking solution to support the growth of the emerging green fuels market. Pexapark’s new Green Fuel Prices will allow customers to access daily marginal-cost reference prices for renewable hydrogen and ammonia, based on the input costs of renewable energy power purchase agreements (PPAs) and the risk profile of producing green fuels using renewable power.
Green fuels are expected to play a key role in the decarbonisation of existing demand and hard-to-abate sectors, such as industry, transport, and heating. The European Union has set an ambitious target of 42% renewable hydrogen in industry by 2030, and 60% by 2035. This represents a 200-fold growth of the market, with 40 GW of electrolysers producing 10 Mt of renewable hydrogen by 2030. Global demand for renewable hydrogen is forecast to reach 180 Mt by 2030, with EU demand making up around 11% of this.
Despite ambitious targets and growing demand, the absence of well-established reference prices for green fuels has hampered the efforts of producers and investors to scale up, without secured buyers and revenue certainty.
Leveraging Pexapark’s expertise in pricing long-term power risk enables green fuel producers to assess both the price and risk associated with an oversized PPA, empowering them to strike the ideal balance between equipment utilisation and cost efficiency. This overcomes the key market challenge of ensuring that green fuel production remains both sustainable and financially prudent.
Pexapark’s Green Fuel Prices provide a comprehensive view of the green fuel market, offering over 900 prices covering different contract structures, markets, technologies, capacity ratios, tenors, and start dates. Customers can view daily price changes and historical trends for renewable hydrogen and ammonia on the PexaQuote platform. Pexapark’s Green Fuel Prices also comply with the Renewable Fuels of Non-Biological Origin (RFNBO) requirements, outlined in the EU Delegated Act.
Michael Waldner, CEO, Pexapark, said: “Today marks a significant milestone for Pexapark, providing price transparency for renewable hydrogen and ammonia, which supports market participants overcome a core market challenge. By establishing a comprehensive benchmark for green fuel prices across Europe, we hope to unlock pent up capital ready to flow into the sector, paving the way for the widespread implementation of large-scale green hydrogen projects.”
Pexapark has provided reference prices for green fuels to key clients since the start of 2023, supporting over 1.4 GW of Power-to-X projects to date. The launch of Green Fuel Prices on PexaQuote builds on Pexapark’s reputation as a trusted benchmark for European renewables and aims to encourage the investment and collaboration needed to accelerate growth in Europe’s green fuels market.
Waldner added: “I’d like to thank our growing client base of over 200 leading energy companies that continue to place their trust in our PexaQuote platform. With their invaluable support, Pexapark’s price references have earned their place as the most reliable and trusted benchmarks in the renewables market.”
Pexapark is a specialist price intelligence, software and advisory services provider in renewable energy. With more than 30,000 MW of renewable PPA transactions supported, Pexapark is the reference for buying, selling and managing renewable energy.
Pexapark’s PPA reference prices increase transparency across 19 markets. Our advisory team and software suite enable leading companies to close successful PPA transactions, manage their market risk and monetise their renewable energy investments.
Pexapark was founded in 2017 with the purpose of accelerating the energy transition towards net zero by creating an efficient market for renewable energy.
For more information, please get in touch with us at firstname.lastname@example.org