During a conference in Lisbon, Anise Ganbold from Aurora Energy Research mentioned that the cost of producing green hydrogen in Iberia is expected to more than halve to around EUR 5/kg by 2035-40 from the current EUR 10-11/kg. This decrease is attributed to the growing green capacity in Spain and Portugal, making production costs cheaper than in countries like Germany, France, and the Netherlands. The high load factors for renewables generation in Iberia, with a forecast of green power contributing 90% of output by 2040, will allow direct grid connection for electrolysers and utilization of low wholesale prices. Despite the current discrepancy between production costs and buyer preferences, projections suggest a potential shift in buyer behavior by 2040 due to rising prices of alternative energy sources. Although there have been cancellations of European hydrogen projects due to high costs and low demand, Ganbold views this as a natural course for less mature projects in the sector. The favorable production costs in Iberia are driving the development of the hydrogen market in the region, with the proposed H2Med pipeline construction with France highlighted by Spanish TSO Enagas as a key step in this direction.