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
14 February 2025
Leading European hydrogen investor commits $50m to green fuels developer amid continued uncertainty over US renewables policy
14 February 2025
Focus on facilities in Spain, Egypt and the UK as Mideast Gulf country aims to scale up output to supply markets in Europe and Asia
12 February 2025
Tax incentives attract multiple proposals for hydrogen hubs as government launches new initiative to speed up transition
11 February 2025
Multiple production routes and regional policy differences hamper nascent sector’s ability to attract investment