Comparing the costs of green hydrogen and battery storage involves understanding their production and deployment costs, which can vary significantly over time due to technological advancements and economies of scale. Here’s a breakdown of how these costs are projected to evolve:
Green Hydrogen Costs
- Current Costs: Green hydrogen production currently ranges from approximately $3.74 to $11.70 per kilogram, depending on the location and technology used.
- Future Projections: Costs are expected to decrease significantly over the long term. By 2030, estimates suggest prices could reach around $3.7 per kg in the U.S. and $5.6 per kg in the EU. By 2050, prices might range from $1.60 to $5.09 per kilogram, driven by lower electrolyzer costs and cheaper renewable energy.
- Long-term Potential: Technologies like improved electrolyzers and cheaper renewable energy could reduce production costs up to 85% in the long term.
Battery Storage Costs
- Current Costs: Battery storage, particularly lithium-ion batteries, has seen rapid cost reductions. Current costs for large-scale battery systems are around $200-300 per kilowatt-hour (kWh).
- Future Projections: Like green hydrogen, battery storage costs are expected to continue decreasing. However, specific long-term projections (e.g., to 2050) are not detailed in the provided results.
- Long-term Potential: Advancements in battery technology and economies of scale are expected to further reduce costs, potentially making battery storage more competitive for energy storage applications.
Comparison Over the Long Term
- Green Hydrogen: Offers potential as a fuel for heavy-duty transport and industrial processes but remains more expensive than gray hydrogen in the short term. Its cost trajectory is expected to converge with or potentially undercut gray hydrogen by the end of the decade in new plants.
- Battery Storage: Primarily used for short-duration energy storage, it is generally cost-effective for applications like grid stabilization. However, its long-term energy storage capacity is limited compared to hydrogen, which can store energy for longer durations.
In summary, while both green hydrogen and battery storage are expected to see cost reductions over time, their comparative costs will depend on specific use cases and technological advancements. Green hydrogen might become competitive for longer-duration energy applications, while battery storage will likely remain cost-effective for shorter-term energy needs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-costs-of-green-hydrogen-and-battery-storage-compare-over-the-long-term/
