During a conference in Lisbon organized by Portuguese green lobby Apren, Anise Ganbold, head of global commodities at Aurora Energy Research, highlighted the potential for a significant reduction in the cost of producing green hydrogen in Iberia. The cost is projected to decrease to around EUR 5/kg by 2035-40 compared to the current EUR 10-11/kg, positioning Iberia as a more cost-effective location for green hydrogen production than other European countries. This cost reduction is attributed to the increasing green capacity in Spain and Portugal, where renewables are expected to contribute up to 90% of the power output by 2040. This shift allows electrolysers to be directly connected to the grid, benefiting from low wholesale prices without the need for intermediaries or power purchase agreements. Despite the current 'price mismatch' between production costs and buyer preferences for lower prices, Ganbold suggests that market dynamics could change by 2040, potentially influencing increased acceptance of higher green hydrogen prices. The recent cancellations of European hydrogen projects due to cost challenges and lack of demand are viewed as a natural progression in the sector's evolution. The situation in northern Europe, with higher production costs, is seen as an opportunity for the growth of the Iberian hydrogen market. Additionally, the development of the H2Med pipeline, in collaboration with France and Spanish TSO Enagas, further enhances the prospects for the Iberian green hydrogen industry.