Future Hydrogen Costs: Green Hydrogen Expected to Drop to €2/kg by 2050
Studies indicate that the production cost of green hydrogen could decrease to €2/kg by 2050, making it competitive with fossil fuels. Currently, green hydrogen prices in Europe range from €6.71 to €7.42/kg, while blue and grey hydrogen are priced at approximately €4.12/kg and €3.33/kg, respectively. Achieving the €2 target hinges on significantly lowering electricity costs, which are not expected to be feasible until after 2050.
Theia Market Signal Identification - AI Assisted
Hydrogen costs vary significantly by production method. Studies suggest green hydrogen production costs could fall to €2/kg, making it competitive with fossil fuels. Current prices range from €15-20/kg at stations, with green hydrogen averaging €6.71-7.42/kg in Europe.
Blue hydrogen costs about €4.12/kg and grey hydrogen at €3.33/kg. The Russia-Ukraine war temporarily made green hydrogen cheaper in some regions. Future projections estimate green hydrogen costs could reach €3/kg by 2030 and potentially €2/kg by 2050, with production cheapest in countries like Norway, Spain, and Greece. Meeting the €2 threshold relies on achieving low electricity prices, which are currently deemed unrealistic until after 2050.
Comments