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
30 May 2025
Pressure is growing on developers to prove the bankability of their projects in a challenging market for green hydrogen
23 May 2025
Investors remain committed to development but are waiting on greater international market certainty
22 May 2025
The government has ambitions to scale up production and become a major exporter by the end of the decade
21 May 2025
Half of winning bidders are based in southern European country as €1b auction clears at lower-than-expected levels
