Pexapark has officially launched its innovative Green Fuel Prices application. This groundbreaking platform is poised to revolutionize the sector by providing stakeholders with access to daily marginal-cost reference prices for renewable hydrogen and ammonia. These reference prices are calculated based on the input costs associated with renewable energy power purchase agreements (PPAs) and the inherent risk profiles of green fuel production using renewable power sources.
Pexapark, a key player in the renewable energy market, has been offering reference prices for green fuels to its select clientele since the outset of 2023. So far, these reference prices have been instrumental in supporting over 1.4 gigawatts (GW) of power-to-x projects. This move comes at a critical juncture as the European Union (EU) aims to achieve ambitious targets of 42% renewable hydrogen in industry by 2030 and an even more substantial 60% by 2035. This translates into a staggering 200-fold expansion of the market, with a whopping 40 gigawatts (GW) of electrolysers churning out 10 million metric tons (Mt) of renewable hydrogen by the end of this decade.
However, despite these lofty ambitions and a growing demand for green fuels, the absence of well-established reference prices has posed a formidable challenge for both producers and investors. Without the security of buyers and revenue certainty, the path to scaling up production remains fraught with uncertainties, according to Pexapark.
The company's formidable expertise in pricing long-term power risk now enters the equation. Through their Green Fuel Prices platform, green fuel producers can meticulously assess the price and associated risks linked to an oversized power purchase agreement (PPA). This strategic approach allows them to strike an ideal balance between equipment utilization and cost efficiency, ultimately ensuring that green fuel production remains both sustainable and financially prudent.
One noteworthy aspect is that Pexapark's Green Fuel Prices align seamlessly with the Renewable Fuels of Non-Biological Origin (RFNBO) requirements laid out in the EU Delegated Act. This compliance underscores the company's commitment to adhering to regulatory standards while facilitating the growth of the green fuels sector.
Commenting on this groundbreaking initiative, Pexapark's Chief Executive, Michael Waldner, stated, “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.”
