Renewable electricity costs are falling
Green hydrogen costs approaching $3/kg
Falling prices for wholesale electricity generation and electrolysers are helping green hydrogen approach the costs of the grey variety in some regions
New plants coming online in the US could produce green hydrogen at $3.29/kg, according to analysis by investment bank Lazard. Lazard has undertaken an analysis of the levelised cost of hydrogen in an effort to provide greater clarity to those in the industry on the potentially disruptive role of the fuel. There are a number of important factors that affect the cost of hydrogen—the Lazard analysis focuses on electrolysers and electricity, and did not analyse conversion, shipping, transport or additional investment costs. Electricity represents 40-70pc of the levelised cost to produce hydrogen from electrolysers with a capacity of over 20MW, with the cost and utilisation rate of the electrolys
Also in this section
1 April 2026
Multiple projects have been scrapped and valuations have nosedived, but the IEA says hydrogen is no passing fad
25 March 2026
The Middle East energy shock has highlighted the value of France’s unique potential to deploy nuclear-powered electrolysers
18 March 2026
The second fossil-fuel price shock in four years can be a much-needed catalyst for investment in the sector
9 March 2026
Hydrogen has not stalled in the UK because the technology does not work. The problem is that the system around it does not yet move at the speed required
