Renewables to inflate green hydrogen costs – JP Morgan
Bank urges ‘greater realism’ over near-term deployment of hydrogen
Rising capital costs for wind and solar power generation are likely to inflate production costs for green hydrogen, posing a new risk to its ability to compete with fossil fuels, according to US bank JP Morgan’s latest energy outlook report. Surging costs for metals, freight and engineering services are likely to have raised the capital costs of wind and solar “considerably”, and the increases will ultimately feed through to power costs for consumers such as electrolysers, the report says. The costs of green hydrogen production are expected to fall as technology efficiency improves and producers gain economies of scale. But because power accounts for 50-70pc of the levelised costs of green
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