Green hydrogen costs could fall by 30% by 2025 - IHS Markit

Toyota hydrogen fuel cell. Author: Joseph Brent.

July 16 (Renewables Now) - The production costs for green hydrogen, already down by 50% since 2015, are expected to fall by an additional 30% by 2025, according to IHS Markit.

The main drivers will be economies of scale and more standardised manufacturing, says Simon Blakey, Senior Advisor, Global Gas. According to the IHS Markit Power-to-X Tracker, the average size for power-to-x projects scheduled for 2023 reaches 100 MW, which is 10 times the capacity of the biggest systems currently in operation.

IHS Markit also projects that by 2030 the production of hydrogen through electrolysis could be cost competitive with the predominant methods today for which the feedstock is natural gas.

The power-to-x investments planned globally, where hydrogen accounts for the large majority, are seen to surpass USD 700 million in 2023, surging from just USD 30 million in 2019.

"Hydrogen’s overall share in the energy mix will ultimately depend on the extent of decarbonization that is desired. In Europe, currently the primary market for hydrogen projects, hydrogen could account for as much as one third of the energy mix if the aim was 95% decarbonization or greater," IHS Markit says.

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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