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Green hydrogen cost reduction

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Green hydrogen cost reduction

6th January 2021

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As global economies aim to become carbon neutral, competitive hydrogen produced with renewables has emerged as a key component of the energy mix. Falling renewable power costs and improving electrolyser technologies could make "green" hydrogen cost competitive by 2030, this report finds.

Green hydrogen can help to achieve net-zero carbon dioxide (CO2) emissions in energy-intensive, hard-to-decarbonise sectors like steel, chemicals, long-haul transport, shipping and aviation. But production costs must be cut to make it economical for countries worldwide. Green hydrogen currently costs between two and three times more than "blue" hydrogen, which is produced using fossil fuels in combination with carbon capture and storage (CCS).

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This report from the International Renewable Energy Agency (IRENA) outlines strategies to reduce electrolyser costs through continuous innovation, performance improvements and upscaling from megawatt (MW) to multi-gigawatt (GW) levels.

Report by Irena

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