By 2030, significant cost reductions for green hydrogen are projected. Here are some key projections:
- Cost Reduction Estimates: It is anticipated that hydrogen production costs will decrease by around 50% by 2030, with some sources suggesting even higher reductions of up to 60% through improvements in manufacturing scale, learning rates, technological advancements, and larger module sizes.
- Price Projections: The International Council on Clean Transportation (ICCT) estimates that the cost of green hydrogen could reach $3.7 per kg in the United States and $5.6 per kg in the European Union by 2030. Other predictions suggest it could drop to around $2.5 per kg globally, driven by increased efficiencies and economies of scale.
- Driving Factors: The primary drivers behind these cost reductions include decreased capital expenditures (CAPEX) in electrolyzers, efficiency improvements, and cheaper renewable energy sources.
These projections indicate that green hydrogen is moving towards becoming a more competitive and affordable option for industrial applications by 2030.
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