Wind PPAs tend to result in lower production costs than solar
Green hydrogen costs rise in Europe
Analysis by price-reporting agency ICIS shows costs have risen in line with increases in wholesale power market
Green hydrogen production costs, including capital costs, using a power-purchase agreement (PPA) currently average around €6.10–8.15/kg ($5.95–7.94/kg) in Europe, according to analysis by price-reporting agency ICIS. This is significantly higher than the €4–4.50/kg costs evaluated in early 2021, due to the recent uptick in wholesale power prices. The EU is still formulating its rules for what can qualify as green hydrogen production. But under the latest version proposed by members of the European Parliament, renewable hydrogen can be produced from grid-sourced electricity as long as developers secure power-purchase agreements (PPAs) from renewable energy installations for the equivalent amo
Also in this section
10 December 2025
Project developer Meld Energy ready to accelerate 100MW project in Humber region after securing investment from energy transition arm of private equity firm Schroders Capital
9 December 2025
BP and Engie abandon large-scale green hydrogen projects in Gulf state as developers in all regions continue to struggle with lack of firm offtake
5 December 2025
European Commission highlights rapid growth of Chinese production this year, as it retains strict procurement rules in latest European Hydrogen Bank subsidy auction
2 December 2025
Oil major cites deteriorating demand and a planning debacle as it abandons one of UK’s largest blue hydrogen projects
