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
Also in this section
24 April 2024
Demand for energy purposes to outpace feedstock applications by the 2040s as government policies drive consumption, says DNV
24 April 2024
Danish firm joins growing list of European electrolyser manufacturers establishing production in US as IRA incentives prove strong draw
19 April 2024
UAE renewables developer weighs opportunities to join green hydrogen projects in US and Canada, Andreas Bieringer, director of green hydrogen business development and commercial, tells Hydrogen Economist
17 April 2024
Building green hydrogen ports and lower production costs key to becoming global exporter