Hydrogen cost to fall by 50%
A new Hydrogen Council report shows that the cost of hydrogen can fall by up to 50% by 2030 with investment support.
The latest Hydrogen Council report shows that the cost of hydrogen solutions will fall sharply within the next decade. As scale up of hydrogen production, distribution, equipment and component manufacturing continues, cost is projected to decrease by up to 50% by 2030 for a wide range of applications, making hydrogen competitive with other low-carbon alternatives and, in some cases, even conventional options.
The report attributes this trajectory to scale-up that positively impacts the three main cost drivers:
- Strong fall in the cost of producing low carbon and renewable hydrogen;
- Lower distribution and refueling costs thanks to higher load utilization and scale effect on infrastructure utilization; and
- Dramatic drop in the cost of components for end-use equipment under scaling up of manufacturing.
To deliver on this opportunity, supporting policies will be required in key geographies, together with investment support of around $70 billion in the lead up to 2030 in order to scale up and achieve hydrogen competitiveness. While this figure is sizable, it accounts for less than 5% of annual global spending on energy. For comparison, support provided to renewables in Germany totalled roughly $30 billion in 2019.
Click here to read the full report.