IBHYX, labelled as the first Iberian renewable hydrogen price index, will be updated weekly and serve as a price signal that reflects the minimum price producers need to sell renewable hydrogen profitably.
According to Mibgas, the levelised cost of hydrogen (LCOH) production in Spain and Portugal amounts to €5.85/kg (148.36/MWh), adhering to Renewable Fuels of Non-Biological Origin (RFNBO) criteria.
To calculate the LCOH, a working group including Spanish and Portuguese stakeholders collaborated to define a representative model plant and methodology, which incorporates all financial and operational costs, including renewable electricity from dedicated plants and the grid.
The model is based on a 50MW electrolyser facility with a total cost of €1,600/kW. The price will be updated weekly, reflecting fluctuations in power purchase agreements (PPAs) for wind and solar energy, as well as the cost of CO2 emissions allowances.
Additionally, Mibgas also plans to integrate data for what offtakers are willing to pay into the model.
However, the €5.85/kg, or 148.36/MWh, set out in IBHYX is higher than the €127/MWh ($4.24/kg) offered when the Portuguese government opened its first tender for hydrogen and biomethane blending last May.
The news from Mibgas also follows on from DH2’s recent plans to develop four large-scale green hydrogen facilities in Spain’s Extremadura region.
With a combined capacity of 1.5GW, the portfolio represents the largest renewable hydrogen production capacity currently under development in Spain, generating more than 75,000 tonnes of green hydrogen annually.
