Green hydrogen: the economics?

This data-file models the economics of green hydrogen production via the electrolysis of water, powered by renewable energy. IRRs and NPVs are calculated incorporating our best estimates of capex costs, opex costs, power prices, CO2 prices, utilization rates and conversion efficiencies.

A base case hydrogen price of $7/kg ($60/mcfe) is required to earn a 10% unlevered return on a green hydrogen project. The most challenging input is not cost or efficiency, but utilization rate, if a green hydrogen project is to be truly green, and fully powered by renewables.

A full cost breakdown is calculated, on a bottom up basis, covering c40 cost lines, including materials, manufacturing and the balance of plant. We have also tabulated data to disaggregate electrolysers’ total system efficiency.

The full model contains a short summary of our conclusions, and allows you to flex our input assumptions to stress-test the economics. Sensitivity analyses are also included, varying capex, utilization, H2 prices and electricity costs.