The price of “green” hydrogen may drop to 5 euros per 1 kg by 2025

Green hydrogen is considered one of the biggest factors for the success of decarbonization and the future of green energy supply. The hydrogen economy is still in development. The German government, in turn, notes that by 2030 the production capacity of “green” hydrogen in the country will be increased to 10 GW.

The price of “green” hydrogen may drop to 5 euros per 1 kg by 2025

The German consulting company Aurora Energy Research reported that Germany has already announced the construction of hydrogen projects with a total capacity of 21 GW, but only a part of them has been implemented. Analysts estimate that the industry will need up to 300 TWh of green hydrogen by 2050.

The company assumes that the average cost of producing green hydrogen using renewable energy will fall to around 5 euros per kg by 2025. Industrial buyers will not be willing to pay more than 5 euros per kilogram in the coming years. From 2030, according to the forecast, green hydrogen import costs will continue to decline if transport infrastructure such as ports and pipelines are built first.

The maximum profitability of the project for the production of “green” hydrogen can only be achieved with a combination of wind and solar parks, along with small electrolyzers.

Analysts also suggested that if green hydrogen is produced under electricity purchase agreements, without direct co-location of the plant with renewable energy, production costs could also drop to 5 euros per kg.

“Because in these cases the location of the recoverable systems can be optimized and the cell can be built closer to customers, the cost of transporting hydrogen and possibly also storage is reduced,” they said.

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