according to this report, the drop in prices will not happen immediately
Presented as an essential lever for the energy transition, green hydrogen will remain much more expensive than expected for decades to come, reports a new study published by BloombergNEF (BNEF).
A harsh return to reality. While green hydrogen attracts many companies and politicians, a new report published by BloombergNEF throws a wrench into the pond. If a few years ago it was banking on a rapid drop in the price of hydrogen, the firm has revised its forecasts downwards.
Citing higher than expected costs, particularly at the level of electrolyzers, BNEF now estimates that the price of green hydrogen will increase from a current range of $3.74 to $11.70/kg to 1.60 to 5.09 $/kg in 2050. For comparison, “gray” hydrogen, produced from natural gas, today costs between $1.11 and $2.35 per kilogram.
« Without subsidies or incentives, the high costs of producing green hydrogen make it difficult to decarbonize sectors such as chemicals and refining »warns one of the authors of the report.
A harsh return to reality. While green hydrogen attracts many companies and politicians, a new report published by BloombergNEF throws a wrench into the pond. If a few years ago it was banking on a rapid drop in the price of hydrogen, the firm has revised its forecasts downwards.
Citing higher than expected costs, particularly at the level of electrolyzers, BNEF now estimates that the price of green hydrogen will increase from a current range of $3.74 to $11.70/kg to 1.60 to 5.09 $/kg in 2050. For comparison, “gray” hydrogen, produced from natural gas, today costs between $1.11 and $2.35 per kilogram.
« Without subsidies or incentives, the high costs of producing green hydrogen make it difficult to decarbonize sectors such as chemicals and refining »warns one of the authors of the report.
China and India at the forefront
Two markets are exceptions: China and India. According to BNEF, these two countries will achieve parity between green and gray hydrogen by 2040.
Conversely, the report considers “out of reach” the Biden administration’s objective of reducing the price of green hydrogen to $1/kg by 2031. If Texas could be led to produce the cheapest green hydrogen in the United States, the reduction would remain very gradual with the price going from 7.22 dollars today to 4.82 dollars in 2030. In Europe, Spain would reach similar levels.
Source : BloombergNEF
Belgium
