Market dynamics to drag green hydrogen to $1.50/kg by 2030

Elevated fossil fuel prices have left producers of ‘grey hydrogen’ exposed to skyrocketing costs, which are unlikely to come down until post-2024 – according to Rethink Energy’s latest natural gas outlook. Not only is green hydrogen from renewables already cost competitive with grey hydrogen, but it is now the only way we can expect to see hydrogen return to a cost of $1.50 per kilogram by 2030.Russia’s invasion of Ukraine, and the subsequent geopolitical turmoil across the world, has driven gas prices up more than 300% since the start of this year. For producers of grey hydrogen using stream methane reforming, with 44 kWh of natural gas is required for every kilogram of hydrogen produced, costs now sit at $3.30 per kilogram of hydrogen.With $3.70 per kilogram already achievable for green hydrogen, the benchmark has been raised from the $1.50 per kilogram benchmark for it…

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