Advancements in Hydrogen Production: Cost Reductions and Global Competitiveness
Key Ideas
- The US DoE projects that electrolysis advancements could lower clean-hydrogen production costs to $1/kg by 2031, with strategic resource allocation and public support deemed essential.
- Cleantech startup Evoloh secures a supply agreement for 0.5 GW of electrolyzer stacks with a US renewable energy developer, showcasing market traction and growth.
- ABI Research forecasts the global LCOH becoming cost-competitive at $2.50/kg by 2030, driven by renewable energy price reductions and efficiency gains in electrolyzer technologies.
- Partnerships like VNG AG and HyCC's collaboration on a 500 MW electrolyzer in Germany highlight the growing interest in green hydrogen production at scale for industrial applications.
The US Department of Energy released a report emphasizing the potential of electrolysis to significantly reduce clean-hydrogen production costs to $1/kg by 2031, attributing this to technological advancements and manufacturing scale-up. The report underlines the importance of strategic resource allocation and public support to achieve these goals. Meanwhile, Evoloh, a cleantech startup based in Santa Clara, California, has secured a supply agreement for 0.5 GW of electrolyzer stacks with a major US renewable energy developer, signaling significant market uptake. On a global scale, ABI Research predicts that the levelized cost of hydrogen (LCOH) will become cost-competitive, dropping to $2.50/kg by 2030 and further declining to $1.80/kg by 2040, driven by lower renewable energy prices and improved electrolyzer efficiencies. Additionally, VNG AG and HyCC have announced a partnership to develop a 500 MW electrolyzer in Germany, with operations set to begin in 2029 to supply green hydrogen to local industries. The Dutch government is also prioritizing hydrogen infrastructure, aiming to complete pipelines by 2033, showcasing a broader commitment to hydrogen as a key element of the energy transition.