Green hydrogen could reach cost parity with grey by 2030 – IEA
Increase in carbon prices and continued fall in technology costs could bring renewable form of fuel down in price
The price of carbon would have to exceed $135/t CO₂e by 2030 to ensure the cheapest green hydrogen production is competitive with the cheapest grey hydrogen production in northwest Europe, according to the IEA’s Northwest European Hydrogen Monitor report. Allowance prices within the EU emissions trading system ranged from €66–81/t CO₂ ($68–84/t CO₂) in November and are expected to rise towards 2030 as the market tightens. For European grey hydrogen, natural gas typically accounts for 70pc of the levelised cost of hydrogen production (LCOH) and for about 80pc of the operating expenses. As such, Russia’s invasion of Ukraine and the ensuing spike in gas prices resulted in the LCOH of grey hyd
Also in this section
17 May 2024
Company’s Positive Motion strategy to be at forefront of the EU’s green hydrogen, e-fuel derivatives and biofuels drive to decarbonise and solve energy trilemma
15 May 2024
Huge turnout for Rotterdam trade show masks worrying lack of progress for nascent industry confronting the harsh realities of transition
8 May 2024
Commission modelling of emission reduction pathway implies undershoot of current hydrogen production and imports targets, according to speakers at a recent Hydrogen Europe event
8 May 2024
Hydrogen cars may not have much credibility, but the same could have been said about EVs not too long ago