- High Production Costs: The cost of producing green hydrogen remains elevated, primarily due to the expensive process of electrolysis and the high cost of renewable energy sources required for this process.
- Infrastructure Costs: Building the necessary infrastructure for green hydrogen, including electrolyzers, storage facilities, and transport networks, is capital-intensive and requires significant investment.
- Lack of Strategic Policies: Governments often lack long-term, strategic policies that could provide a stable framework for private investment in green hydrogen infrastructure and technology.
- Lack of Skilled Workforce: There is a shortage of trained personnel capable of designing, implementing, and maintaining green hydrogen systems, including electrolysers and fuel cells.
- Market Development and Economies of Scale: Green hydrogen is still a developing market, and achieving economies of scale that reduce costs will be crucial for its economic viability. Currently, economies of scale are harder to achieve without broader adoption and scaling up of production.
Addressing these barriers is essential for making green hydrogen an economically viable alternative to fossil fuels.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-economic-barriers-to-transitioning-from-fossil-fuels-to-green-hydrogen/
