Cost of hydrogen production tipped to halve in 10 years

A new report published by the Hydrogen Council predicts that the cost of renewable hydrogen production could halve over the next 10 years, putting Australia is in prime position to become a leading global supplier of a green fuel that will beat even “unabated” fossil fuels.

Renew Economy is reporting that the predictions have been detailed in a new assessment prepared by global consultancy McKinsey, which suggests that modest investment in developing hydrogen technologies could not only see renewable hydrogen bridge the cost gap with “brown” or “blue” hydrogen – produced using fossil fuels but also see hydrogen become cost competitive with conventional energy sources, including oil and gas.

With a 50 per cent drop in hydrogen costs achievable by 2030, McKinsey expects renewable hydrogen would be cost competitive across more than 20 applications, including commercial vehicles, long-range transport, industrial heating, residential heating and cooling currently served by gas and as a “balancing” source in electricity systems.

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