Green hydrogen costs rise in Europe

Analysis by price-reporting agency ICIS shows costs have risen in line with increases in wholesale power market

Green hydrogen production costs, including capital costs, using a power-purchase agreement (PPA) currently average around €6.10–8.15/kg ($5.95–7.94/kg) in Europe, according to analysis by price-reporting agency ICIS. This is significantly higher than the €4–4.50/kg costs evaluated in early 2021, due to the recent uptick in wholesale power prices. The EU is still formulating its rules for what can qualify as green hydrogen production. But under the latest version proposed by members of the European Parliament, renewable hydrogen can be produced from grid-sourced electricity as long as developers secure power-purchase agreements (PPAs) from renewable energy installations for the equivalent amo