MIBGAS launches the MIBGAS IBHYX, the first Iberian index for renewable hydrogen pricing, with an initial reference of €5.85/kg (148.36 €/MWh). This weekly indicator, designed to reflect production costs at typical electrolysis plants, is published on a new microsite (www.greenenergy.mibgas.es) that will centralize information on renewable gases and energy efficiency.

Marcos Rupérez, independent hydrogen consultant, appreciates the methodology of the index but points out limitations: “It’s a good effort to estimate the price at which someone would be willing to produce hydrogen. But it’s unlikely that anyone would want to buy at that price because it’s out of market.”

In an interview with Energía Estratégica España, the analyst adds that the index should be interpreted as a reflection of production costs: “It’s positive if understood as the cost of producing hydrogen, but not as the purchase price.”

Meanwhile, Eugenio Trillo,a key figure at Lean Hydrogen, highlights that “30% of global hydrogen is already being sold at high prices, even up to €10/kg, in sectors such as glass industry, semiconductors, metallurgy, and mobility.”

According to Trillo, these specific markets could accept a price of €5.85/kg, but he warns that the consumption volume is a challenge.

“These sectors consume, on average, half a ton per day, which is very little for large plants,” he notes.

Market challenges and the gap between supply and demand

The MIBGAS IBHYX index represents the minimum price at which a producer would be willing to sell to ensure the profitability of a renewable hydrogen plant in the Iberian Peninsula.

However, Rupérez cautions that “creating a good indicator is useful, but it doesn’t necessarily reflect a price accepted by the market.”

In this regard, MIBGAS indicates that the next step will be to define the demand price (bid), i.e., how much buyers would be willing to pay, which will allow measuring market liquidity.

For his part, Trillo emphasizes that the main problem is not the existence of markets accepting high prices, but the low consumption volume these represent compared to the production capacity of large plants, such as 100 MW plants that can produce 50 tons per day when running at full capacity. “The challenge will be to find sufficient demand to balance this potential supply,” he explains.

Collaboration and long-term vision

The IBHYX index is the result of joint work led by MIBGAS, involving producers, marketers, transporters, consumers, and bodies such as the CNMC and the Ministry for Ecological Transition and the Demographic Challenge. This group developed an advanced model to calculate the levelized cost of production for renewable hydrogen (LCOH), considering financial variables and costs associated with renewable electricity generation, both from plants and the grid.

According to MIBGAS, the Iberian Peninsula has a unique competitive advantage to lead green hydrogen production thanks to its low renewable energy costs, making it viable to manufacture at competitive prices. The index aims to strengthen this position and foster the development of an emerging market.

With the launch of the index, MIBGAS also introduced a dedicated microsite for renewable gases, which will include weekly updates on the IBHYX index, its methodology, and related regulations. The platform aims to centralize all relevant information and promote transparency in the sector.

The creation of the IBHYX index is a step forward in providing clear signals in the renewable hydrogen market.

However, as Trillo points out, “the real challenge will be scaling consumption volume to make it attractive for large plants.”

For his part, Rupérez emphasizes that the usefulness of the index will depend on its proper interpretation: “It’s positive if understood as a tool to understand the cost of production, not as a market price.”