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Diahuebs, 28 September 2023 AWEMainta ENVIRONMENT 45

Low-Carbon Hydrogen Faces Cost

Challenges, Calls for Support Grow

LOW-CARBON hydrogen, touted as

a pivotal player in the transition to
sustainable energy, currently faces
cost competitiveness issues in most
applications and locations, according

to an analysis by the World Energy
Council (WEC), conducted in collabo-
ration with PwC and the U.S. Electric
Power Research Institute.

The report highlights the need for
substantial support to bridge the cost
gap and accelerate the adoption of

green hydrogen, but it also points to
the sector’s increasing prominence
and positive market signals.

Environmental and political factors are
aligning to elevate the profile of green
hydrogen, offering a glimmer of hope
for its future. Numerous pilot proj-

ects are either under development,
construction, or already operational energy source. universally accepted color codes for
on a global scale. Hydrogen, known as Several countries are actively fostering specific technologies are needed to
a versatile energy carrier, finds appli- bilateral partnerships to estab- avoid prematurely dismissing poten-

cations in various sectors, including lish global hydrogen supply chains, tially cost-effective solutions.
industry and transport. ensuring a clean and secure hydrogen
supply. With the right policies and tech- Despite these challenges, various firms
Green hydrogen, produced via methods nological advancements, some projec- are entering the green hydrogen sector.

like electrolysis using renewable tions suggest that green hydrogen SSE Renewables and Siemens Gamesa
energy sources, is considered a corner- could become cost-competitive with Renewable Energy, for example,
stone for achieving carbon neutrality. other energy solutions as early as recently announced a partnership to
However, its current cost structure 2030. explore opportunities related to green

presents a significant challenge. Most hydrogen production at selected wind
hydrogen production still relies on fossil However, the hydrogen economy faces farms in Scotland and Ireland.
fuels, and green hydrogen production what the WEC report terms a “chicken
remains expensive. and egg problem” in terms of supply In conclusion, green hydrogen is

and demand. To establish a sustain- emerging as a crucial player in the
The U.S. Department of Energy has able value chain, secure volumes of quest for sustainable energy solutions.
embarked on the Energy Earthshots supply and demand must complement While cost competitiveness remains a
Initiative, with the initial goal of each other effectively. hurdle, the increasing focus on environ-

reducing the cost of clean hydrogen mental concerns and global pilot proj-
to $1 per kilogram within a decade. Additionally, there is a growing debate ects offers hope that, with concerted
Presently, green hydrogen costs hover surrounding the use of colors, such as efforts and support, green hydrogen
around $5 per kilogram, demonstrating brown, blue, gray, and pink, to classify can become a prominent component

the magnitude of the cost reduc- hydrogen production methods based of the clean energy landscape in the
tion required to make it a competitive on their carbon footprint. Clear and coming years.