Green hydrogen could fall under $2/kg by 2025 – RMI

Cost of fuel will drop as electrolyser manufacturing is standardised and gains economies of scale

Low-cost green hydrogen can be achieved faster and with lower deployment volumes than currently expected, according to thinktank the Rocky Mountain Institute (RMI). Green hydrogen production costs could fall below $2/kg in many areas in the next five years, RMI says in a new report, Fuelling the Transition: Accelerating Cost-Competitive Green Hydrogen. For offtakers which can accept a fluctuating hydrogen supply, an estimated $1/kg could be achieved due to reduced storage requirements, the report says. The Biden administration set a goal to produce hydrogen at $1/kg by 2030 as part of its Hydrogen Shot Initiative. “Green hydrogen is not a future aspiration. The technology and markets are rea