Cost for green hydrogen production to decrease in 2023 - Rystad Energy

Economy Materials 13 February 2023 11:55 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, February 13. Some 24 million tons of hydrogen is expected to be produces from 212 GW of electrolyzers by 2030, Trend reports via Rystad Energy, independent energy research and business intelligence company from Norway.

According to the report, this growth will be backed by the latest round of incentives such as the US's Inflation Reduction Act and Europe’s multitude of support schemes.

Rystad Energy's outlook for global electrolyzer capacity says that the capacity is expected to increase by 186 percent year-on-year in 2023. At the same time, service price inflation for electrolyzers, needed for hydrogen production, is forecast to decrease by 10-15 percent by 2027, as green hydrogen technology introduction increases and costs go down.

Thus, as the research said, In the short term, the price of electrolysers will start to decline as prices of key raw materials stabilize after an unstable period.

"In the medium to longer term technological innovation and efficiency gains will reduce the need for iridium, resulting in a significant cost reduction. However, unexpected jumps in costs could occur as iridium faces supply pressures as key producer South Africa faces power outages," Rystad Energy pointed out.

This demonstrates that the transition to energy is not going to be predictable, as many rely on green hydrogen to follow a path similar to that of solar PV, the investment costs of which have fallen by about 80 percent between 2010 and 2020, the report noted.