IRENA: Green hydrogen could compete with fossil fuel produced varieties by 2030

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Image: Toshiba

The cost of hydrogen produced with green energy could compete with those of fossil fuels by 2030, according to new research.

The International Renewable Energy Agency (IRENA) claims that further investment in the technology from governments could reduce the cost of electrolysis by 40% within a decade, and by 80% by 2050.

Francesco La Camera, IRENA’s director-general, said that implementation could be a “game-changer” as more governments have started to implement decarbonisation targets. The report noted that green hydrogen could be “critical” for sectors that are inherently harder to decarbonise such as steel, chemicals, long-haul transportation and shipping, but the higher cost of hydrogen produced from renewables compared to so-called blue hydrogen is a significant barrier to entry.

Some authorities have made green hydrogen a key component of their carbon reduction targets. The European Union’s green hydrogen strategy, published in July, called for at least 6GW of renewable hydrogen electrolysers to be installed by 2024.

“Levelling the playing field to close the cost gap between fossil fuels and green hydrogen is necessary,” Camera said, adding that cheaper green hydrogen would support the development of a “resilient energy system that thrives on modern technologies and embraces innovative solutions fit for the 21st century”.

Key to the sector’s growth in the coming years will be the standardisation of technologies and products, investing in electrolyser developers to enable them to scale up and benefit from spreading their fixed costs over greater production and reducing overheads within the supply chain, the report said.

However, it added that scale-up and deployment growth would need to be both “rapid” and “aggressive” for costs to come down on a par with that of hydrogen produced from fossil fuels.

Read Next

May 5, 2021
The Australian Renewable Energy Agency (ARENA) has selected three commercial-scale green hydrogen projects that will share in AU$103 million (US$79.7 million) of funding to support their development.
May 4, 2021
PV manufacturer and Solar Module Super League (SMSL) member First Solar has partnered with a Norwegian hydrogen power company to develop a portfolio of green hydrogen production facilities.
May 4, 2021
German developer and EPC contractor juwi has secured a deal to design, supply and build a solar-storage hybrid project at an off-grid gold mine in Egypt.
May 4, 2021
Canada-based renewables company Amp Energy will a develop portfolio of large-scale PV projects and battery energy storage systems as part of an AU$2 billion (US$1.55 billion) hub in South Australia.
PV Tech Premium
May 3, 2021
Companies are purchasing solar, wind, and other forms of renewable energy more than ever before. The power purchase agreement (PPA) market in Europe has grown to a cumulative capacity of over 12GW, with a record 4GW signed in 2020. Corporate climate commitments are opening doors for investment in renewable energy, and continued price declines are convincing companies to sign new contracts. Is the European market ready to fulfil its potential? By Dr. Mercè Labordena, senior policy advisor at SolarPower Europe, and Milena Koot, communications advisor at SolarPower Europe
May 3, 2021
China installed 5.56GW of solar in Q1 2021, new data from the country’s National Renewable Energy Consumption Monitoring and Warning Center has revealed.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021