Recently, experts are thinking that by 2030 we could be looking at hydrogen being as cheap as $1 per kilogram. That is the suggestion being made by some, including experts at Wood Mackenzie. This would be an incredible turn of events, delivering a more affordable access level for those looking to switch to hydrogen. It would also ensure that powering everything from machinery to our vehicles using hydrogen will become something affordable for individuals.
What is driving this expected change in pricing? The ability to sell eletrolyzers at a much fairer price. This will help at least some nations to move towards the fair pricing of hydrogen noted above. Indeed, experts at Wood Mackenzie also believe that while $1/kg would be achievable in some nations, others might still be able to find a price point of around $2/kg.
That would still be a huge step down in cost from what we would be expecting to pay. The reduction in price of electrolyzers has long been the main reason for the price of hydrogen to change. If these become cheaper, then the use of hydrogen is easier and cheaper to implement across the board.
Is affordable hydrogen the hope for the future?
It certainly feels that way. Many are looking to see a big increase in the use of green tech like hydrogen in the future, and it is easy to see why. It provides us with such a powerful source of energy, all without the same long-term worries about environmental damage and cost.
For that reason, many people are looking to try and find a solution to make electrolyzers cheaper today. this would help to speed things along even further. Still, though, even if the wait took until the predicted 2030 date, that would still be a good pace to make change.
To make this achievable, the electrolyzers would need to be as cheap as around $10 per MWh, or less, and would need to provide a capacity factor of at least 50% according to the new Wood Mackenzie report. Countries with high levels of solar irradiation paired with high winds (wind turbines) – nations in South America, such as Chile, in particular – would be able to meet these amounts in the near future.
While this might sound like a long-term hope, the mechanisms are already working into place to ensure that, in the future, affordable hydrogen is no longer the pipedream that it sounds.
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