Green hydrogen could reach cost parity with grey by 2030 – IEA

Increase in carbon prices and continued fall in technology costs could bring renewable form of fuel down in price

The price of carbon would have to exceed $135/t CO₂e by 2030 to ensure the cheapest green hydrogen production is competitive with the cheapest grey hydrogen production in northwest Europe, according to the IEA’s Northwest European Hydrogen Monitor report. Allowance prices within the EU emissions trading system ranged from €66–81/t CO₂ ($68–84/t CO₂) in November and are expected to rise towards 2030 as the market tightens.   For European grey hydrogen, natural gas typically accounts for 70pc of the levelised cost of hydrogen production (LCOH) and for about 80pc of the operating expenses. As such, Russia’s invasion of Ukraine and the ensuing spike in gas prices resulted in the LCOH of grey hyd