Hydrogen production costs depend on electrolysis efficiency and power prices

Chart showing hydrogen production costs by electrolysis technology under different electricity price assumptions

Hydrogen production costs remain the key constraint on scaling renewable hydrogen, with electricity prices, utilisation rates and system efficiency outweighing technology choice alone. The analysis shows that cost reductions will depend more on access to low-cost power and high operating hours than incremental electrolyser improvements. Hydrogen production costs are shaped primarily by electricity prices, electrolyser utilisation and capital intensity rather […]

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