Home Commodities Market Movers Europe, April 29-May 3: Bids for green hydrogen and wind...

Market Movers Europe, April 29-May 3: Bids for green hydrogen and wind underway; quarterly results roll in across commodities

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This week, the clean hydrogen market will be closely watching the results of the EU’s first European Hydrogen Bank auction on Tuesday.

The European Commission has allocated Eur800 million to support renewable hydrogen production projects on a fixed premium over 10-year contracts, with a price ceiling of Eur4.50/kg. The auction was oversubscribed with 132 bids from projects in 17 countries.

The results will be key to understanding the pace of the ramp-up for green hydrogen.

In oil, Shell reports first-quarter results on Thursday. Oil and gas output is expected to look broadly stable after several years of decline.

CEOs have been increasing pressure on the UK to improve conditions for the North Sea industry, so there is considerable interest in Shell’s views ahead of upcoming elections.

More broadly, the market appears calmer due to a perceived easing of tensions in the Middle East, although the ongoing Russia-Ukraine war and threats to Red Sea shipping remain a concern.

In Germany, onshore wind developers have until Thursday to submit bids for support contracts after a record number of permits were granted in the first quarter.

Tender volumes have been reduced from 4 gigawatts to 2.8 gigawatts, reflecting some delays in the filtering of permits.

Onshore wind is Germany’s biggest source of electricity, but capacity growth is lagging behind Berlin’s ambitious 2030 climate targets.

As results season continues for the metals industry, investors are eagerly awaiting updates from Glencore, which reports on Tuesday, followed by Europe’s largest steelmaker ArcelorMittal on Thursday.

I’m Sophie Dyas, thank you for kicking off your Monday with S&P Global Commodity Insights.

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