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‘Let’s reach for the stars’: EU aims for green hydrogen below €2/kg by 2030
(EurActiv, 30 Nov 2021) The cost of producing green hydrogen with renewable energy is set to fall and the capacity to produce it in Europe and nearby countries will likely surpass current targets by 2030, European Union officials said on Monday (29 November).
Countries and companies have seized on green hydrogen – a fuel obtained by passing renewably-produced electricity through water to split the element from oxygen – as a way to cut greenhouse gas emissions, especially from heavy industry.
Until now, green hydrogen has been far more expensive than versions produced using fossil fuel, including the dominant “grey” hydrogen that relies on natural gas.
But high gas prices due to strong demand and lower stocks have driven up the cost of making the carbon-emitting version, meaning the cleaner technology can start to compete, European Commission President Ursula von der Leyen said at an event in Brussels.
The cost of emitting carbon under the EU’s trading system has also hit record highs, further increasing the cost of emissions-heavy fuels and providing an incentive to move away from them, potentially allowing production of green hydrogen to reach the scale that becomes more economic.
“Because of the current rise in gas prices that we see, green hydrogen today can even be cheaper than grey hydrogen,” von der Leyen told an event in Brussels.
In 2020, grey hydrogen could be produced for around €2 per kilogram, compared to as much as €6 per kilo for the green version, industry estimates found.
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EurActiv, 30 Nov 2021: ‘Let’s reach for the stars’: EU aims for green hydrogen below €2/kg by 2030
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