Clean hydrogen production expected to cheapen by 60 percent in a decade
- According to Hydrogen Council, green hydrogen production costs are likely to reduce by up to 60 percent by 2030. This is explained by electrolyser manufacturing scaling-up and clean power generation cost-cutting. Australia is listed among the most promising nations for hydrogen industry.
Competitive costs for hydrogen production are coming closer. Since the existing techs are scaling up, low carbon solutions are predicted to enter many applications in ten years. However, for reaching this target, the sector still needs adequate investments, policies and demand.
It is forecasted that cost for hydrogen will reduce twice for lots of applications in a ten years’ period. Thus, hydrogen will become able to meet competition with other alternative or even traditional power sources. In order to achieve this, the corresponding policy as well as USD70bn funding is needed for such key locations as Australia.
Previously, WoodMac announced its forecast for hydrogen generated mostly by solar-powered electrolyzer to be on a par with other power sources in 10 years in Japan, Germany and Australia.
Hydrogen Council expects that renewable and low carbon hydrogen production cost reduction can reach 60 percent during ten years to come. The advisory body claims this can be possible due to a number of reasons, such as developing opportunities for more affordable carbon capture and storage, electrolyser manufacture scaling-up, as well as cheapening of green electricity production.
IEA’s prediction is less optimistic: the agency expects clean hydrogen production costs to drop by about 30 percent in a coming decade.