Related Articles
Reducing the cost of blue and green hydrogen
Forward article link
Share PDF with colleagues

Economics of blue hydrogen strong in near-term

Panellists agree it will take time and incentives to reduce cost of green hydrogen to a level where it is competitive with the blue variety

Blue hydrogen can be produced for as little as $1/kg in the US, but this is still twice the cost of grey hydrogen, meaning government intervention will be vital to spur production of the cleaner fuel, according to various speakers at conferences this week. Blue hydrogen will always cost more to produce than grey hydrogen because of the additional carbon capture and storage processes required, Richard Mew, director at consultancy Koyos Resources, told the First Element conference. “The general consensus is that you need a cost of producing hydrogen at $1.5/kg in order for significant carbon abatement to occur,” he said, noting this was possible only in jurisdictions with low gas prices.

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
ITM Power to raise finance for expansion
15 October 2021
Firm looks to raise a total of £250mn to build two further factories to meet demand
Octopus and RES to invest £3bn in UK green hydrogen
14 October 2021
Partnership is evaluating several sites for construction of green hydrogen production and is in discussion with offtakers
Carbon price would make hydrogen viable – Wood Mackenzie
14 October 2021
Accelerating development of low-carbon hydrogen before 2030 would require carbon prices above $60/t
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video