G, April 2, 2025 /PRNewswire/ — Global energy and commodity price reporting agency Argus has launched an index to assist companies trading low-carbon hydrogen products into Europe.
The Argus EU Low-carbon Ammonia Benchmark (EULAB) is the mass-balanced, all-in cost of low-carbon (“blue”) ammonia delivered to Amsterdam, Rotterdam or Antwerp (ARA) ports.
The CBAM (Carbon Border Adjustment Mechanism) becomes effective in the EU from January 2026. Importers will be required to pay an annually increasing amount for certificates that account for embedded carbon emissions in products purchased from outside the EU. The economics of choosing low-carbon ammonia will likely receive a strong boost from the mechanism.
While European policy makers are prioritising subsidies for ‘green’ products, there is widespread expectation that because of cost and availability, large imports of blue ammonia — where the carbon is captured at source — will be required for direct use as a marine fuel and for power generation. Ammonia can also be split into its constituent hydrogen and nitrogen, to enable the use of the hydrogen in other industrial and energy applications.
Argus Media chairman and chief executive Adrian Binks said: “Our new EULAB offers price transparency and will help market participants manage input cost volatility.”
Over the next 10 years, the US is expected to become an important production hub for blue ammonia exports to Europe. The EULAB index is based on US Gulf coast autothermal reforming ammonia production using Henry Hub-priced natural gas, local US power prices, and carbon capture and storage, with the resultant ammonia delivered in Medium Gas Carrier vessels to Europe.
The EULAB index offers a clear market reference and is useful for product of any origin delivered into Europe. It can also be adjusted to account for the higher or lower carbon intensity of other production technologies.
The EULAB index has seen a high/low variation of 65% over the past 12 months, and has moved in a €269/t range during February alone, highlighting the need for a responsive, representative benchmark.
The launch follows the successful implementation of the Argus Japan Korea Low-carbon Ammonia Benchmark (JKLAB) in June 2024, which reflects the all-in cost of blue ammonia produced in the US Gulf coast and delivered to the key markets of South Korea and Japan.
The Argus EULAB complements Argus’ leading suite of ammonia spot price assessments and hydrogen production costs around the world. Like its stablemate JKLAB, the Argus EULAB is published in Argus Hydrogen and Future Fuels.
Argus contact information
London: Seana Lanigan
+44 20 7780 4200
Email Seana
Houston: Matt Oatway
+1 713 968 0000
Email Matt
Singapore: Tomoko Hashimoto
+65 6496 9960
Email Tomoko
About Argus Media
Argus is the leading independent provider of market intelligence to the global energy and commodity markets. We offer essential price assessments, news, analytics, consulting services, data science tools and industry conferences to illuminate complex and opaque commodity markets.
Headquartered in London with over 1,500 staff, Argus is an independent media organisation with 30 offices in the world’s principal commodity trading hubs.
Companies, trading firms and governments in 160 countries around the world trust Argus data to make decisions, analyse situations, manage risk, facilitate trading and for long-term planning. Argus prices are used as trusted benchmarks around the world for pricing transportation, commodities and energy.
Founded in 1970, Argus remains a privately held UK-registered company owned by employee shareholders and global growth equity firm General Atlantic.
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