Charted: The Production Costs of Hydrogen Across the Globe

Michelle Heath
The Production Costs of Hydrogen Across the Globe

There exists significant potential for hydrogen to play a role powering our future communities. There is a range for the production costs of hydrogen associated with the delivery of low-carbon green or blue hydrogen that will continue to improve with innovation and scale.

Hydrogen produced using natural gas and CCUS known as blue carbon is a low-carbon solution which is cost competitive to with existing sources of hydrogen to produce.

Blue hydrogen, produced from natural gas in combination with carbon capture, utilization and storage (CCUS) is a low-carbon energy source that is cost competitive with other low-carbon solutions.

Particularly in regions which receive abundant sunlight, hydrogen made using renewable electricity (known as green hydrogen) will eventually be cost competitive with blue hydrogen.

Required Hydrogen Production Costs for Breakeven with Conventional Solutions (with 100 USD / ton of CO2e carbon tax)

Reference TechnologyUseBreakeven Cost (USD/kgH2)
CoalSteel (DRI)$4.60
DieselMid-Sized Vehicles$2.30
Natural Gas (SMR)Ammonia$2.20
Natural Gas (SMR)Refinery$2.20
Natural GasHigh-grade Heat$1.50
Natural GasPower Generation$1.40
Natural GasBuilding Heating$1.20
Ship FuelShips$1.00

There are many applications of hydrogen today which could substitute existing fuels, should they be hydrogen compatible.