Plug Power introduces first spot pricing model for Green Hydrogen
This marks a major shift in how hydrogen is bought and sold, moving away from rigid long-term contracts to a more dynamic market approach.
US Hydrogen fuel cell developer, Plug Power has announced the launch of its new spot pricing system which is set to allow green hydrogen buyers to purchase fuel on demand, enabling a more flexible system.
For years, companies looking to secure hydrogen had to commit to long-term agreements, often locking them into fixed prices and supply commitments.
Plug Power’s new pricing model changes that by allowing businesses to buy liquid green hydrogen as needed, making it easier to respond to fluctuations in demand.
This option is expected to appeal to manufacturers, retailers, and energy producers looking for more control over their energy costs.
The introduction of spot pricing has already attracted interest from key players in the hydrogen market, as Plug Power has secured multiple agreements with large industrial gas companies, signalling strong industry confidence in the new purchasing method.
Plug Power CEO Andy Marsh highlighted the customer-driven focus behind this initiative. “This new model is about making green hydrogen more accessible and adaptable to real-world business needs. It removes barriers and offers buyers the flexibility they’ve been asking for.”
The shift towards on-demand procurement is expected to reshape how hydrogen is distributed and priced, encouraging wider adoption of green energy alternatives.
With facilities in Georgia, Tennessee, and Louisiana producing a combined 45 tonnes of liquid green hydrogen daily, Plug Power is well-equipped to support this market shift. The company ranks among the top hydrogen producers in North America and is the only commercial-scale producer of liquid green hydrogen.
To enhance transparency, S&P Global Platts will publish weekly price updates every Thursday, based on Plug Power’s supply and demand conditions. Buyers who have signed up for the spot pricing programme can then make purchases at the listed price, ensuring a clear and predictable purchasing process.
Sanjay Shrestha, President of Plug Power, pointed to the operational advantages. “Our facilities will be able to run at peak efficiency while giving buyers a more practical way to secure hydrogen when they need it. It’s a win-win for the industry.”
This move is expected to set a precedent for how hydrogen is traded in the years ahead. As the industry evolves, more buyers may shift towards spot purchasing, making green hydrogen more widely available and cost-effective.
