Renewable electricity costs are falling
Green hydrogen costs approaching $3/kg
Falling prices for wholesale electricity generation and electrolysers are helping green hydrogen approach the costs of the grey variety in some regions
New plants coming online in the US could produce green hydrogen at $3.29/kg, according to analysis by investment bank Lazard. Lazard has undertaken an analysis of the levelised cost of hydrogen in an effort to provide greater clarity to those in the industry on the potentially disruptive role of the fuel. There are a number of important factors that affect the cost of hydrogen—the Lazard analysis focuses on electrolysers and electricity, and did not analyse conversion, shipping, transport or additional investment costs. Electricity represents 40-70pc of the levelised cost to produce hydrogen from electrolysers with a capacity of over 20MW, with the cost and utilisation rate of the electrolys
Also in this section
4 March 2026
Turmoil in Middle East reminds nascent clean hydrogen sector that its future prospects are dependent on global energy markets and geopolitics
25 February 2026
Low-carbon hydrogen and ammonia development is advancing much more slowly and unevenly than once expected, with high costs and policy uncertainty thinning investment. Meanwhile, surging energy demand is reinforcing the role of natural gas and LNG as the backbone of the global energy system, panellists at LNG2026 said
18 February 2026
Norwegian energy company has dropped a major hydrogen project and paused its CCS expansion plans as demand fails to materialise
4 February 2026
Europe’s largest electrolyser manufacturers are losing patience with policymakers as sluggish growth in the green hydrogen sector undermines their decision to expand production capacity
