Technology costs are expected to fall
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
16 May 2025
Only 21% of approved IPCEI projects reach FID as cost overruns and funding delays hamper progress, according to European Commission officials
14 May 2025
Defining moment for US hydrogen sector as House Republicans seek termination of green tax credits
13 May 2025
Existing specifications have been a good starting point for standardisation of hydrogen quality, but they need rethinking—a 99.5 mol-% specification is a promising candidate
12 May 2025
The sector needs a standard covering hydrogen quality for the entire value chain, but no single hydrogen quality covers the needs of all stakeholders
