Siemens predicts falling hydrogen costs
Siemens Energy sees $1.5/kg green hydrogen by 2025
Cost of green hydrogen will fall, but it will still struggle to compete against grey hydrogen without incentives, report says
Germany-based Siemens Energy expects the costs of producing green hydrogen in the US to fall to $1.5/kg by 2025 from $4.5/kg currently, according to a report issued in partnership with Reuters Events. Current costs of production in the US are around $4.5/kg. However, even at $1.5/kg green hydrogen will struggle to compete economically with the grey variety of the fuel, according to Rich Voorberg, president of Siemens North America. “When you evaluate the business cases, the lower cost of natural gas makes it very hard to switch to hydrogen,” he says in a report titled How can North America achieve net zero carbon? A Siemens Energy View. Early investors in green hydrogen are taking the risk
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