Cost Comparison
Green Hydrogen Production Costs
- Current range: $4.5–$12/kg, with best-case scenarios at $1–$2/kg using low-cost renewables ($20/MWh) and optimized electrolyzers.
- Projections: Expected to drop below $3.7/kg in the US and $5.6/kg in the EU by 2030, undercutting gray hydrogen ($0.98–$2.93/kg) in key markets like Brazil and India.
- Key drivers:
- Electricity costs (dominant factor): Must fall below $30/MWh for competitiveness.
- Electrolyzer costs: Need to decline by 80% (from ~$770/kW to $130/kW) through scaling and innovation.
- Policy support: Subsidies (e.g., US Inflation Reduction Act) accelerate cost parity.
Other Renewables
| Energy Source | Levelized Cost (2025) | Efficiency (Conversion) |
|---|---|---|
| Solar PV | $20–$50/MWh | 15–25% (panel efficiency) |
| Wind Onshore | $30–$60/MWh | 30–50% (turbine efficiency) |
| Wind Offshore | $60–$100/MWh | 40–50% |
| Green Hydrogen | $4.5–$12/kg (~$13–$36/MWh-equivalent) | 60–80% (electrolyzer efficiency) |
Representative ranges for electricity generation.
Assumes 1kg H₂ ≈ 33–39 kWh energy content; equivalent MWh cost calculated from hydrogen price.
Efficiency Considerations
- Electrolyzer efficiency:
- Alkaline: ~65–70% (LHV)
- PEM: ~70–80% (LHV)
- Future tech (e.g., solid oxide) could reach 85%.
- Round-trip efficiency:
- Hydrogen (electrolysis → fuel cell): ~30–40%
- Batteries (charge → discharge): ~85–95%
- Direct renewables (solar/wind → grid): ~90–95%
Competitiveness Outlook
- Advantages:
- Decarbonizes hard-to-abate sectors (steel, shipping) where direct electrification is impractical.
- Long-term storage: Outperforms lithium-ion batteries for seasonal energy storage.
- Challenges:
- Higher costs: Remains more expensive per unit of energy than wind/solar-generated electricity.
- Infrastructure gaps: Requires massive scale-up of electrolyzers and transport networks.
Summary: Green hydrogen is less efficient and currently costlier than direct renewable electricity but is critical for decarbonizing industries that cannot be electrified. Costs are projected to fall below fossil-based hydrogen by 2030 in favorable markets, driven by policy support and electrolyzer advancements.
Industry-standard estimates.
For applications requiring high energy density or long-duration storage, hydrogen’s lower efficiency may be offset by its flexibility.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-green-hydrogen-compare-to-other-renewable-energy-sources-in-terms-of-cost-and-efficiency/
