Green hydrogen cost to decline quicker than expected – Goldman Sachs

Costs on course to hit parity with grey hydrogen as early as 2026 in some regions, investment bank says

Technological innovation and economies of scale are driving down green hydrogen production costs “more swiftly than previously expected”, investment bank Goldman Sachs says. Green hydrogen’s levelised cost could fall to parity with grey hydrogen at around $2/kg as early as 2026 in regions including Chile, Mena and China, the bank says in a recent research note. The forecast assumes Chile and Mena have below-average renewable power costs of around $15/MWh. Green will compete with grey in China in 2026 because of higher-than-average natural gas prices of around $10/’000 ft3. In regions where renewable power costs $30-40/MWh and average gas prices are around $5/’000 ft3, green hydrogen hits par