Green hydrogen costs surge up to 65% in a year

Higher electrolyser and finance costs among factors inflating LCOH but green hydrogen seen holding market share compared to blue, says McKinsey and Hydrogen Council

The levelised cost of renewable hydrogen (LCOH) has surged by 30–65% in the last 12 months on the back of higher electrolyser capex, and financing and renewable power costs, according to joint analysis by consultants McKinsey and industry group Hydrogen Council. Costs have also risen because of the broader inclusion of additional costs such as EPC compared to estimates made a year ago, they said in the 2023 edition of their Global Hydrogen Flows report. The US is the lowest cost producer of both renewable and gas-based low-carbon hydrogen in 2030, with renewable achieving a unit production cost of well below $1/kg and low-carbon just above $1/kg. The cost projections are based on the report’