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About wholesale hydrogen gas price

Types of wholesale hydrogen gas price

Hydrogen gas, H2, is an energy carrier that is predominantly produced from natural gas, called grey hydrogen. Grey hydrogen is made via a process called steam methane reforming (SMR), where high-temperature steam reacts with natural gas to produce hydrogen and carbon monoxide. Most of the carbon emissions produced in this process today are still emitted into the atmosphere through vents and therefore are unaddressed.

Blue hydrogen is produced the same way as grey hydrogen, but with the difference that carbon emissions are captured and stored (technologies that capture up to 90% of the carbon emissions produced). The captured carbon can be used for other purposes, hence referring to blue hydrogen as a by-product. Green hydrogen is produced by electrolyzing water to split out oxygen from hydrogen, and the electricity used for this process must be renewable, hence green (wind, solar, etc.). Yellow hydrogen is produced through electrolysis but utilizes electricity generated from nuclear energy.

How to choose wholesale hydrogen gas price

In wholesale hydrogen gas price, the following factors are important:

  • Purity

    The intended use of the hydrogen gas determines the purity level required. For example, food-grade hydrogen needs at least 99.99% purity, while industrial-grade hydrogen requires only about 96-97% purity. Printing businesses would demand the gas to be pure to prevent the ink from being contaminated, while the automotive and power sectors will purify it less depending on their needs.

  • Production method

    Hydrogen buyers should also look at the source from which particular hydrogen is produced. Buyers should get the type of hydrogen they want, whether blue, green, grey, or yellow hydrogen, and ensure it is produced by the appropriate means. The reason for this is that clean hydrogen such as green and yellow hydrogen prices are higher compared to grey and blue hydrogen, although all types of wholesale hydrogen prices may still be within reach depending on the type of business one is operating, the volume of the gas one is purchasing, and the economic factors of a given time.

  • Logistics

    Buyers should also consider logistics such as whether the gas they are purchasing will be delivered in bulk, in tanks, or through pipelines. One must also consider how far the supplier is situated because the further away the supplier, the costs involved in transportation will be higher, affecting the wholesale price. The buyer's location relative to the supplier also affects the transportation costs and time. It is closer and takes less time to transport hydrogen to nearby suppliers.

  • Volume

    Hydrogen gas prices vary depending on the quantities purchased. Buyers who purchase hydrogen in large volumes often get lower prices per unit. The reason is that the fixed costs of providing large quantities are spread out over more units. Buying in bulk increases the costs of storage and transport because more preparation will be required in handling the gas.

  • Market conditions

    The overall economic condition of any given time affects the pricing of hydrogen gas wholesale. Hydrogen is likely to cost higher if the demand is high, hence the gas supply cannot meet the market requirements. Seasonal demand may affect prices. For instance, there may be an increase in the demand for hydrogen in summer when there is a high utilization of air conditioning systems because more water will be needed for electrolysis since air conditioning system adds water to the atmosphere.

Specifcations and maintenance of hydrogen gas

Hydrogen gas comes in many grades, including industrial-grade hydrogen, with typically 90% to 96% purity, which is used in the ammonia production process, petroleum refining, metallurgy, and in the semiconductor industry where pure hydrogen is required to create a reducing atmosphere in the furnaces. Other types of hydrogen are specialty-grade hydrogen with at least 99.9% purity, research-grade with 99.9999% purity, and food-grade hydrogen with at least 99.9% purity that must contain less than 0.1% v/v carbon monoxide. These are for the foods, research, and specialty industries.

Hydrogen gas is delivered in cylinders, tube trailers, or bulk storage tanks. It can also be delivered in pipelines for those using hydrogen constantly. Hydrogen can be stored for a certain period in steel or composite cylinders, bulk storage tanks, and underground. Exposure to the atmosphere cannot cause the gas pressure to increase in cylinders. It only increases, for instance, when the storage area is exposed to higher temperatures, is impacted by a flame, or is installed with a regulator mounted on the valve. Other storage options include porous rock formations, salt caverns, and aquifers.

When transported through pipelines, it is embedded in high-strength steel and designed to prevent any leakage. Pipelines are often buried underground to prevent any physical damage.

How to use hydrogen gas

Hydrogen gas is a diverse product with many applications across different industries. In the chemical industry, it's chiefly used in ammonia production through the Haber-Bosch process, which combines hydrogen and nitrogen. In petroleum refining, hydrogen helps in hydrocracking and desulfurization processes to produce cleaner fuels. The semiconductor industry uses it to create reducing atmospheres for vital processes. Hydrogen powers fuel cells in the transport sector to provide electricity in vehicles, trains, and ships.

The metal industry uses hydrogen to reduce metal oxides to purify metals like iron and copper by eliminating sulfur and phosphorus impurities through a process called hydrometallurgy in the mining industry, where metal ores are soaked in a solution containing bacteria to separate the metals from the rocks. Hydrogen gas can be used to produce electricity when combined with oxygen, and the only byproduct will be water. This feature makes hydrogen gas a preferred energy source in industries because it suffices all the needs of most of the industries.

Benefits of hydrogen gas

  • Environmental benefits: The only emission resulting from hydrogen gas utilization is water vapour, especially when the gas is derived from renewable energy sources. This makes hydrogen gas green alternative to fossil fuels and prevents the atmosphere from being contaminated, which is advantageous to the environment.
  • Energy security: Hydrogen is produced from diversified domestic energy sources, including natural gas, biomass, and water, therefore enhancing energy security and reducing dependence on single-source energy. It is also advantageous because it can be produced anywhere, hence enhancing accessibility.
  • Storage solution: Hydrogen gas is used in combination with other renewable energy sources to enhance the reliability of the electricity supply. Excess power is converted to hydrogen through electrolysis for future use, which can be done during times of high electricity demand. This makes it a good storage solution.
  • Versatile energy carrier: Hydrogen can be used in different forms such as fuel cells to generate electricity or be used in internal combustion engines, making it flexible in transport and industrial applications. Fuel cells are used in vehicles to heat up and provide an electric current, and they are also used in powering industrial machinery.
  • Economic development: Hydrogen economy creates a lot of job opportunities in generation, storage, distribution, and utilization and promotes innovation in technologies and infrastructure for instance fuel cell vehicles. This benefits the economy at large.

Q&A

How much does hydrogen gas cost?

As this is a high-demanding product with limited supplies, a large volume of the gas comes at a high cost. The price of high-quality hydrogen is higher than the price of fossil fuels because the production cost is higher.

Does the weather affect the price of hydrogen?

Yes. When the weather is suitable for generating renewable energy sources, the cost of producing green hydrogen will go down, and vice versa when the weather is not conducive for these energies. Other factors also affect the cost of hydrogen.

How is hydrogen transported?

Hydrogen can be transported in high-strength steel cylinders or underground pipelines. It can also be transported in trucks for the shorter distance and in pipelines for the longer distance.

How can hydrogen be stored?

Hydrogen can be stored in cylindricals, underground, in bulk storage tanks, or in pipes.

How is hydrogen useful to the environment?

The only emission resulting from the utilization of hydrogen is water vapour. This makes the gas a preferable alternative to fossil fuels, which pollute the environment.