Both power prices and electrolyser capex will need to drop for green hydrogen to undercut blue
European green hydrogen unlikely to undercut blue until 2050 – Aurora
Norway, Spain and the UK expected to achieve lowest production costs in 2030s, according to research company’s modelling
Green hydrogen production costs in Europe could fall to parity with blue in 2030 in some markets but further reductions look out of reach until 2050, consultancy Aurora Energy Research says. Parity with blue hydrogen would be at around €3/kg ($3.40/kg). Reducing green’s levelised cost of hydrogen to the key €2/kg point, where it starts to undercut blue hydrogen, could take until 2050, Aurora says. Achieving €2/kg would require both power prices and electrolyser capex to drop significantly below levels considered reasonable in the company’s central scenario. “For instance, an electrolyser running at 50pc load factor with an average power cost of €10/MWh could beat the [€2/kg] threshold, but
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