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Green Hydrogen H2 News

Green hydrogen could cost $1 for up to 10 years

Arnes BiogradlijaBy Arnes Biogradlija13/12/20212 Mins Read
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Green hydrogen is seen as one of the most important future fuels and a means of achieving carbon neutrality on the planet. Particularly in industries where electricity is either impossible, impractical, or prohibitively expensive.

Green hydrogen’s ability to enter the economy more actively will, of course, be determined by its price. And here’s the good news, at least according to Wood Mackenzie, a consultancy group.

According to the study, the price of a kilogram of this ecologically beneficial fuel might drop to $ 1 per kilogram in certain nations by 2030, while it could cost up to $ 2 in others, with the difference due to local peculiarities and manufacturing costs etc. Even if the higher price is used as an example, it represents a significant decrease in comparison to the existing price, which averages around $ 4.75 per kilogram in nations and areas where it is controlled, as well as subsidized and even somewhat lower in locations where it is subsidized.

One of the key reasons for the predicted fall in the price of green hydrogen during the next 8 years, according to experts, is the expected decline in the price of electrolyzers. As early as 2025, it is predicted to decline between 35 and 50 percent for various categories. The second reason will be a decrease in the cost of renewable-energy-derived power, which is utilized to produce green hydrogen. And this is when the regional element begins to show up. Countries with a climate that allows for the production of large amounts of inexpensive energy from solar and wind power facilities will have the lowest production costs.

Renewable energy provided to electrolyzers must cost $ 10 / MWh or less to achieve a balanced price of green hydrogen below $ 1 / kg, according to the paper.

Wind-solar hybrid projects in locations with lengthy periods of sunshine and high winds might achieve this. Examples of such countries are Brazil and Chile.

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