Market Problem

Problem Identification & Breakdown

For sector demand to be met exclusively by renewable green hydrogen - and thus for green hydrogen to become widely adopted - total production costs need to drop below $2/kg. Reaching this price point requires reducing both capital investment (CAPEX) and operational costs (OPEX). Three cost components of the green hydrogen lifecycle need to be addressed:

• Electrolyser efficiency;

• Cost of renewable electricity generation; and

• Production plant installation and operational costs.

In the next five to ten years, it is estimated that renewable hydrogen costs could drop to approximately $1-1.50/kg in optimal locations, and roughly USD $2-3/kg under average conditions.