The cost of green hydrogen is generally higher than that of blue hydrogen, though the gap is expected to narrow as technologies improve and renewable energy becomes cheaper.
Green Hydrogen Costs:
- Green hydrogen is produced via electrolysis powered by renewable energy. Current and near-future production cost estimates for green hydrogen are in the range of approximately $3.7 to $5.6 per kilogram in regions like the United States and European Union by 2030, although some optimistic estimates put it as low as about $2.74/kg excluding certain costs.
- Other sources cite a broader range for green hydrogen costs today between roughly $4.5 and $12 per kilogram depending on market and technology conditions, with expectations that costs could fall below €2/kg by 2025 as electrolysis technology advances and renewable energy prices decline.
- Long-term cost reductions of up to 85% are projected through cheaper electricity and lower electrolyser capital costs.
Blue Hydrogen Costs:
- Blue hydrogen, produced from natural gas with carbon capture and storage (CCS), is currently cheaper than green hydrogen. Typical costs for blue hydrogen range from about €1.50 to €3 per kilogram.
- This cost places blue hydrogen roughly in the middle between grey hydrogen (around €1–2/kg) and green hydrogen (which is higher but expected to improve).
Comparison Summary:
| Hydrogen Type | Production Method | Typical Cost Range (per kg) |
|---|---|---|
| Grey Hydrogen | Steam methane reforming, no CCS | ~€1.00 – €2.00 |
| Blue Hydrogen | Steam methane reforming with CCS | ~€1.50 – €3.00 |
| Green Hydrogen | Electrolysis using renewable electricity | ~$3.7 – $5.6 (2030 est.); $4.5 – $12 (current range); potential <€2 by 2025 |
In conclusion, while blue hydrogen currently offers a more cost-effective low-carbon option than green hydrogen, advances in electrolyser technology and renewable energy costs are driving green hydrogen costs down substantially, potentially making it competitive with or even cheaper than blue hydrogen by the end of the decade.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-green-hydrogen-compare-to-blue-hydrogen/
