Aurora Energy Research, a British firm, looked at the cost of manufacturing hydrogen from electrolyzers in eight European nations using four alternative business models.
According to the paper, green hydrogen may be generated at a cost of around 3 euros per kilogram in some European nations by 2030, attaining cost parity with blue hydrogen, which is created from natural gas with the storage of carbon dioxide emitted during the process. It cannot, however, compete with gray hydrogen; to do so, costs must be decreased to around 2 euros per kilogram.
The most competitive production pattern varies from nation to country, and even from area to region, according to a study of different company models. In nations like Norway, Spain, and the United Kingdom, the most cost-effective approach to manufacture green hydrogen is to link an electrolyzer to on-site solar and wind power sources. The optimal business strategy, according to the researchers, would be to maximize capacity use by dynamically altering the matching capabilities of wind and solar energy.
Germany is one of the countries with the highest manufacturing costs, according to Aurora Energy Research. Grid-connected pots are the most cost-effective initiatives in Germany. Periods of high energy expenditures can be avoided, and operational expenses can be decreased in this manner. Green hydrogen would not attain cost parity with blue hydrogen in Germany until the mid-2030s, according to the study, due to high connection costs and network fees.
Aurora Energy Research has also calculated what it will take to attain a €2/kg manufacturing cost. With a 50 percent electrolyzer utilization factor, an average power cost of 10 EUR/MWh would be required, which is unattainable in the near future. According to the experts, specific government support is required in the 2020s to stimulate the development of a green hydrogen economy while also lowering prices.
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