Episode 39 of the WHySE Creatures Stories
This post first appeared on LinkedIn on 13 October 2026.
Rat has three hydrogen quotes. What problem are they actually solving?
Three suppliers, three folders, three calculation methods – and the lowest price. What’s laid out on the table on Rat, Dog and Dragon’s veranda isn’t a maths problem. It’s a list of questions.
“I need hydrogen. Which of the three quotes do you think is the right one, Dog?”
Rat is sitting on the veranda with Dog and Dragon. Her company needs a certain amount of H₂ per day. In front of her lie three folders: three quotes, each with its own assumptions, operating hours and performance limits.
Dragon is the first to leaf through them. “One costs the least. But are the calculation bases comparable?”
Dog pushes his cup aside. “That’s why I’d ask the same questions of all three.
Does the hydrogen flow continuously – or is it supplied in batches, with breaks in between?
What quality does the supplier guarantee?
How long does the supplier guarantee the supply for?
What about reliability?
What happens if a delivery fails to arrive or a plant shuts down?”
Dragon raises his claw. “I’ve got some questions on that too.
Where does the hydrogen come from – and how much CO₂ equivalent is contained in each kilogram?
Is there a certificate? Anyone working to ESG principles and covered by the Industrial Emissions Directive or the Federal Immission Control Act needs no optional extras here – the answer is mandatory. What counts then is evidence such as RFNBO – renewable fuels of non-biological origin – or CertifHy, the European H₂ certification system.
The price – but calculated correctly. I ask about the Levelised Costs of Hydrogen, or LCOH for short: the average cost per kilogramme over the entire operational lifetime.”
“Does the supplier guarantee the quantity?” asks Dog. “What if Rat wants to, or has to, change it? More on one day, less on another?”
“And those are just the most important questions,” he remarks.
Rat looks at the three folders. “Ten questions. No folder answers them on its own.”
“That’s why you write them down,” says Dog, “and send them to the three suppliers. Then you’re not comparing prices, but answers.”
Rat smiles. “Almost a Rooster-style checklist.”
“He’ll appreciate it,” says Dog.
Rat takes a blank sheet of paper. At the top, she writes: Ten questions for the three suppliers.
Rooster’s checklist: the ten review questions
“Almost a Rooster-style checklist” – the allusion makes sense in the H₂ world. In the animal community, Rooster stands for verified sequences and comprehensive lists. An overview of the ten review questions, each with a brief explanation:
- Does the hydrogen flow continuously – or is it supplied in batches, with breaks in between? A continuous flow places different demands on the contract and storage facilities than individual deliveries.
- What quality does the supplier guarantee? The required purity depends on the application – Episode 33 explores in depth just how pure hydrogen can be.
- How long does the supplier guarantee the supply? The commitment must align with the timeframe of one’s own planning.
- What about reliability? Availability depends on whether the design incorporates redundancy – or not.
- What happens if a delivery fails to materialise or a plant shuts down? The focus is on alternative supply and the contractual consequences of a shutdown.
- Where does the hydrogen come from – and how much CO₂ equivalent is contained in each kilogram? The origin determines the carbon footprint of every kilogram supplied.
- Is there a certificate? Anyone subject to the Industrial Emissions Directive or the Federal Immission Control Act must be able to provide evidence such as RFNBO status or CertifHy – this is a requirement, not an option.
- What does the hydrogen cost – calculated as LCOH? The Levelised Costs of Hydrogen combine investment, operating hours and service life into a single calculation.
- Does the supplier guarantee the quantity? The guaranteed quantity must be specified in writing in the quotation.
- Can the quantity be changed? More on one day, less on another – flexibility in quantities must be contractually agreed.
Why price alone isn’t enough
Dragon’s opening question – “But are the calculation bases comparable?” – hits the nail on the head. One supplier charges per kilogram ex-plant, whilst another includes delivery and compression. With on-site production, the return on the invested capital is factored into the price; with delivery, it is not. This is precisely why Dragon asks about the Levelised Costs of Hydrogen: they combine investment, operating hours, energy, maintenance and service life into a single calculation, yielding the average cost per kilogramme over the entire service life. Only on this basis can a price per kilogramme be compared.
Before making a comparison, the company needs a shared vision: which application is to be supplied, what quantity has been determined, and what assumptions does the company itself make? This forms the basis for a robust evaluation brief for the suppliers – and the structure for their responses.
In plain language
Only when all three quotes answer the same questions does a price become a comparable figure.
Anyone who compares different scopes of work based solely on price is making decisions on a flawed basis. What is missing from the quotes will be added later as a supplement – and will affect the budget and the schedule.
Related posts
- Episode 33 – “Just how clean can hydrogen actually be?” The question of purity, standards and methods of supply.
- The WHySE Compass Landmarks to FEL, FEED, FID and other terms in the H₂ sector.
Sources:
Federal Immission Control Act (BImSchG), inofficial version on Gesetze im Internet (German language only)
Industrial Emissions Directive (IED) 2010/75/EU on EUR-Lex.