Wind PPAs tend to result in lower production costs than solar
Green hydrogen costs rise in Europe
Analysis by price-reporting agency ICIS shows costs have risen in line with increases in wholesale power market
Green hydrogen production costs, including capital costs, using a power-purchase agreement (PPA) currently average around €6.10–8.15/kg ($5.95–7.94/kg) in Europe, according to analysis by price-reporting agency ICIS. This is significantly higher than the €4–4.50/kg costs evaluated in early 2021, due to the recent uptick in wholesale power prices. The EU is still formulating its rules for what can qualify as green hydrogen production. But under the latest version proposed by members of the European Parliament, renewable hydrogen can be produced from grid-sourced electricity as long as developers secure power-purchase agreements (PPAs) from renewable energy installations for the equivalent amo
Also in this section
12 August 2025
Norwegian renewables firm secures site for 400MW project, despite strategic shift away from green hydrogen
7 August 2025
Draft law opens door to large-scale carbon capture and storage, and could unleash investment in gas-based hydrogen projects
6 August 2025
The US state of Kansas is emerging as a hotspot for a growing number of gold hydrogen prospectors
6 August 2025
EU industry and politicians are pushing back against the bloc’s green agenda. Meanwhile, Brussels’ transatlantic trade deal with Washington could consolidate US energy dominance
