ICIS – MARKET COMMENT: Northwest Europe ammonia to hydrogen production costs ease further in week 2.
The ICIS Northwest Europe ammonia-to-hydrogen assessment posted further losses during the second week of January with ammonia contracts continuing to come under pressure.
The ammonia-to-hydrogen northwest Europe assessment was assessed at €8.77/kg on 12 January, the lowest value for the contract since early December 2021 and over €4/kg down on the levels seen back in mid-April.
The ammonia-to-hydrogen premium over fossil-fuel based hydrogen production methods remained broadly steady on a weekly basis with the falls in ammonia pricing matched by drops in values on the European natural gas hubs.
Both front-month based unabated SMR and low carbon ATR hydrogen production held discounts of €3.67-4.26/kg below imported ammonia-for-hydrogen, indicating that domestic production would be more profitable given current market prices.
AMMONIA MARKET
Week 2 showed little movement in the global ammonia market, with little spot activity. The only spot business established was PETRONAS selling small lots to Yara and Trammo.
MARKET COMMENT: Northwest Europe ammonia-to-hydrogen production costs ease further in week 2, London, January 13, 2022
