'Not even a carbon price of €200 would make green hydrogen cost-competitive this decade'

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PEO ACWA, CC BY 2.0 , via Wikimedia Commons

Datum: 10-12-2021

Governments will therefore need to subsidise the ramp-up of renewable H2 — and it would be a 'bad idea' to use the fuel for cars and heating, says think-tank report

Green hydrogen will be so much more expensive to produce than grey H2 from unabated fossil fuels, on average, that not even a carbon price of €200 ($237) per tonne — roughly four times higher than today — would make it cost-competitive this decade, according to a new report from German think-tank ?Agora Energiewende?.

Governments will therefore need to subsidise the required ramp-up of renewable hydrogen “for a considerable time” — at an annual cost of €10-24bn across the EU in the 2020s, says the study, Making renewable hydrogen cost-competitive, which was co-produced by analyst Guidehouse and legal firm Becker Büttner Held.

 

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