While many advocate for the development of electric vehicles as a means of lowering greenhouse gas emissions, others feel that green hydrogen is the key to meeting climate change targets.
Green hydrogen, according to many, is the way to go in terms of reducing greenhouse gas emissions from transportation, particularly heavy-duty transport. However, this component, which is derived from renewable energy, is prohibitively expensive and inefficient.
According to Ohmium, once green hydrogen facilities are operational, the cost of producing it will be less than the cost of diesel fuel by 2023. In other words, as production grows, hydrogen may become a viable alternative.
The business, which is now constructing a facility in India that will house a 2 GW electrolyzer, is extremely confident about the future costs of green hydrogen. Indeed, it thinks that by 2023, the price will be approximately $2 or $2.5 per kilo, compared to the present $10. According to the corporation, this price includes all costs associated with production, compression, and shipment, as well as the seller’s profit margin.
While the business feels the cost is competitive with fossil fuels, it says it is still not at the level of battery-powered systems. As a result, Ohmium expects that the cost of green hydrogen will fall to a dollar per kilogram in two years, in 2025. At that time, the component’s history will have changed forever, and its expansion will be accelerated.
This will necessitate both increased production capacity through investment in electrolysers and increased electrical capacity to fulfill future energy demand. Additionally, keep in mind that green hydrogen is (nearly) at its infancy in terms of production and delivery. Due to the high cost of these components, it will be several years before it is reasonably functioning.
