What is the real cost of green hydrogen?
(EurActiv, 27 Nov 2020) What is the real cost of green hydrogen? Is there a reliable and straightforward way to obtain this cost? What information is needed? Is it valid to compare green hydrogen prices with grey or blue hydrogen prices? Mike Parr and Simon Minett attempt to answer these questions.
Mike Parr is director of PWR, a UK-based company providing market research and technical support in the field of renewables and energy efficiency. Simon Minett is founder of Challoch-Energy, a consulting firm.
Green hydrogen is much in the news. In October Cap Gemini published a report called “Net Zero 2020”. Page 36 had a section on green hydrogen with the declaration “At around €6 per kg, green hydrogen is not competitive today with fossil energies (parity at €1/kg equivalent to €25/MWh)”.
Last week another hydrogen organisation announced itself “the Renewable Hydrogen Coalition” accompanied by (yet another) report on green hydrogen which contained (yet another) price estimate for green hydrogen – €6/kg.
Absent from the above is any explanation as to how these price were derived, a common feature of reports and blogs on the subject.