The cost of producing green hydrogen generally remains higher compared to renewable natural gas (RNG), though the specific figures vary based on technology, region, and market conditions.
Green Hydrogen Production Costs
- Green hydrogen is produced by electrolysis powered by renewable energy, splitting water into hydrogen and oxygen.
- Current and near-future cost estimates for green hydrogen production are typically between approximately $3 to $7 per kilogram (about €3 to €7/kg), depending on factors such as electrolyser technology and renewable electricity prices.
- Projections for 2030 suggest costs may reduce to around $3.7/kg in the United States and $5.6/kg in the European Union under central technology improvement scenarios.
- Some optimistic estimates put green hydrogen production cost as low as $2.74/kg in ideal cases, excluding additional infrastructure costs.
- As electrolysis technology advances and renewable energy prices drop, some forecasts anticipate costs falling below €2/kg by 2025-2030, but such low costs are not yet widely achieved.
Renewable Natural Gas (RNG) Costs
- Renewable natural gas, produced from organic waste through anaerobic digestion or other biochemical processes, competes with fossil natural gas but often involves complex feedstock collection and processing.
- The cost of RNG varies widely by feedstock and region but is generally lower than green hydrogen per energy unit delivered.
- While specific up-to-date cost estimates for RNG were not included in the search results, industry sources commonly place RNG costs in the range of approximately $3 to $8 per million British thermal units (MMBtu), which converts roughly to $9 to $24 per kg of hydrogen energy equivalent, depending on conversion factors and process efficiencies.
Cost Comparison Overview
| Parameter | Green Hydrogen | Renewable Natural Gas (RNG) |
|---|---|---|
| Production Method | Electrolysis using renewable electricity | Biochemical conversion of organic waste |
| Typical Cost Range | $3 to $7 per kg hydrogen | ~$3 to $8 per MMBtu RNG (energy basis) |
| Equivalent Energy Cost* | ~$10 to $20+ per MMBtu (based on conversion) | $3 to $8 per MMBtu |
| Cost Trend | Expected to decrease with technology advances | Varies with feedstock availability |
| Sustainability | Zero carbon if powered by renewables | Carbon neutral or negative depending on sourcing |
*Note: 1 kg hydrogen contains about 120 MJ (~114,000 Btu) of energy; RNG energy content varies but is roughly similar to fossil natural gas energy density.
Because green hydrogen production requires electricity-intensive electrolysis, the costs remain sensitive to renewable power prices and electrolyser capital costs. RNG production is limited by feedstock and processing complexity, but generally, the energy cost basis makes RNG cheaper per unit of energy delivered than green hydrogen.
Summary
Green hydrogen, while promising for its zero-carbon footprint and versatility, currently is more expensive to produce than renewable natural gas when comparing costs on an energy equivalent basis. Advances in electrolyser technology and renewable electricity prices could significantly lower green hydrogen costs by 2030, potentially narrowing the gap. RNG benefits from established biochemical technology and feedstock availability but has its own limitations in scalability and sustainability.
Therefore, green hydrogen production remains costlier today, but its declining cost trajectory could make it more competitive with or complementary to renewable natural gas in the near future.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-producing-green-hydrogen-compare-to-renewable-natural-gas/
