Green hydrogen could compete with fossil fuels by 2030

IRENA points out that combination of decreasing prices for solar and wind energy could make this possible
2 minute(s) of reading

hydrogen produced with renewable electricity can compete on costs with fossil fuels by 2030. This is what the new report released by IRENA (International Renewable Energy Agency).

According to the agency, the combination of decreasing prices for solar and wind power, improved performance, as well as economies of scale for electrolyzers could make this possible.

The research analyzes the drivers of innovation and presents strategies that governments can examine to reduce the cost of electrolysers by 40% in the short term and up to 80% in the long term.

“Renewable hydrogen can be a game changer in global efforts to decarbonize our economies. To achieve this, it is necessary to level the playing field to close the cost gap between fossil fuels and this technology”, explained Francesco La Camera, director general of IRENA.

“Cost-competitive green hydrogen can help us build a resilient energy system that thrives on modern technologies and adopts innovative solutions fit for the 21st century,” the expert highlighted.

To achieve this objective, IRENA highlighted the need for standardization and mass manufacturing of electrolyser batteries, efficiency in operation, in addition to optimizing material acquisition and supply chains.

In this case, current manufacturing capacity of less than 1 GW would have to grow exponentially to more than 100 GW over the next 15 years.

“In a best-case scenario, the use of low-cost renewable electricity at US$ 20/MWh in large electrolyzer installations could produce green hydrogen at a price competitive with blue hydrogen,” said La Camera.

“If rapid scale-up and deployment of aggressive electrolysers occurs over the next decade, green hydrogen could then begin to compete in value with blue hydrogen by 2030 in many countries, making it cheaper than other low-carbon alternatives. before 2040”, he concluded.

Picture of Mateus Badra
Mateus Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. Has been following the Brazilian electricity sector since 2020.

One Response

  1. With recent advances in distributed generation and the entry of electrification of heavy transport combined with the success of automobiles such as Toyota's Miraí, Honda's Claity and Hyundai's, the Green Hydrogen Economy can become self-sustainable in Brazil before 2030.

Deixe um comentário

Your email address will not be published. Campos obrigatórios são marcados com *

Receive the latest news

Subscribe to our weekly newsletter