Rapid fall to parity predicted for Australian renewable hydrogen costs
The main cost factors creating a barrier to affordable green hydrogen are the cost of the electricity and the cost of electrolysers, together with capacity utilisation rates.
However, as the authors point out, the cost of renewable electricity from technologies such as solar PV and wind have fallen dramatically over the last few years and are expected to fall even further in the years ahead.
“In many parts of the world, wind and solar power is already the cheapest form of energy for any new built generating capacity. Its average cost is cheaper than electricity from natural gas in many places including Australia and is often cheaper than wholesale prices on the grid,” the report says.
Production of renewable hydrogen is becoming more competitive with that produced by fossil fuel electricity
