Greater investment needed in midstream and end-use switching for hydrogen scale-up
Some US projects will meet $1/kg target by 2031 – DoE
Green hydrogen production costs could fall from $3–6/kg to $1.50–2/kg by 2035, excluding the production tax credit
US green hydrogen production costs, excluding the production tax credit (PTC), could fall from $3–6/kg today to $1.5–2/kg by 2035, according to a recent Department of Energy (DoE) report. The PTC awards a maximum of $3/kg based on lifecycle carbon intensity over a period of ten years for low-carbon hydrogen production projects that begin construction before 2033. While the predicted green hydrogen price by the mid-2030s is higher than the ‘Hydrogen Shot’ target, which aims for low-carbon hydrogen production to cost $1/kg by 2031, “depending on type of electrolyser and availability of high-capacity factor clean energy, some projects may hit the Hydrogen Shot target”, the DoE says. The departm
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
