California hydrogen pump prices climb slightly, remain highest globally

California hydrogen pump prices were assessed by Platts, part of S&P Global Commodity Insights, as maintaining its status of highest price in the world at $32.94/kg on June 3.

The latest monthly average price assessment represented a 1.42% increase from the May 1 assessment from Platts and a 3.43% decrease from the record high set in February. The Platts California pump price assessment is a monthly weighted average hydrogen price offered at retail fueling stations across the state.

Monthly average pump prices have risen 108% from when Platts began the assessment in September 2021.

A May 2 Commodity Insights analysis identified California's pump prices as the highest in the world. For comparison, the latest Platts assessment of Japan's average metropolitan hydrogen pump prices were at $7.71/kg on May 1.

A Canadian hydrogen developer told Commodity Insights May 23 they are offering grid-connected electrolysis-based hydrogen in British Columbia at $3.50-$5.80/kg at the gate, approximately 10,000 kg/day in compliance with Canada's investment tax credit.

Hydrogen fuel cell electric vehicle infrastructure is still in the early stages of development for light and heavy-duty transportation alike, industry members say.

Hydrogen's role in the light duty transportation market in California trails behind the more established battery-electric vehicles and plug-in hybrid EVs. Hydrogen fuel cell electric vehicles made up a 0.85% sales share of the total zero-emission vehicles sales in the state in 2023, according to California Energy Commission data.

The "worst thing" from a station operation standpoint is having to disperse stations across a wide area when fleets are operating a small amount of heavy-duty hydrogen trucks, Kimberly Okafor, general manager of zero emissions solutions at Love's Travel Stop, said May 23 at a World Hydrogen Conference panel.

"Now you've built $40 million worth of infrastructure for four trucks," she said, emphasizing a need to focus on building stations across "one corridor" to build demand.

The Biden administration released an infrastructure strategy document on March 12 that emphasizes the role hydrogen fueling infrastructure will play in decarbonizing heavy transportation.

Hydrogen fuel cell vehicle producer Nikola updated its plans May 7 to build a heavy-duty hydrogen refueling network along the West Coast, stating in its earnings report that it plans to provide nine "fueling solutions" by mid-2024, with 14 total in North America by year-end. In Q1, the company launched its first hydrogen refueling stations in Southern California and in the Edmonton region.