Some US projects will meet $1/kg target by 2031 – DoE

Green hydrogen production costs could fall from $3–6/kg to $1.50–2/kg by 2035, excluding the production tax credit

US green hydrogen production costs, excluding the production tax credit (PTC), could fall from $3–6/kg today to $1.5–2/kg by 2035, according to a recent Department of Energy (DoE) report. The PTC awards a maximum of $3/kg based on lifecycle carbon intensity over a period of ten years for low-carbon hydrogen production projects that begin construction before 2033. While the predicted green hydrogen price by the mid-2030s is higher than the ‘Hydrogen Shot’ target, which aims for low-carbon hydrogen production to cost $1/kg by 2031, “depending on type of electrolyser and availability of high-capacity factor clean energy, some projects may hit the Hydrogen Shot target”, the DoE says. The departm