Green hydrogen imports to compete with EU production

Costs of transport could be outweighed by very low costs of renewable generation in South America, the Middle East and North Africa

Green hydrogen produced in South America, the Middle East or North Africa could be delivered to Europe at levels competitive with local production by 2030 or earlier, despite expensive shipping and cracking costs, according to an analysis of various cost comparisons. At least 50pc of the cost of producing green hydrogen comes from the cost of electricity, meaning desert areas with large amounts of sunshine, land space and wind are well-suited for production. But transporting hydrogen is much more expensive and dangerous than other fuels such as natural gas, reducing the cost-effectiveness of imports. Although all fuels encounter efficiency losses along the value chain, such losses are partic