Published by Todd Bush on March 12, 2024
BOSTON, March 11, 2024 /PRNewswire/ -- In a new report prepared with support from the Environmental Defense Fund, economists from The Brattle Group evaluate the factors driving investment in hydrogen (H2) as a low-carbon alternative fuel or energy carrier. Specifically, they explore how the production and delivery costs of H2 are changing under the influence of recent strong tax incentives, US Department of Energy (DOE) support for hydrogen research and hub development, rapid commercialization, and projected technology improvements.
>> In Other News: Terra Announces Full Concrete Trials of OPUS ZERO™, A Real Zero CO2 Alternative to Portland Cement
The report, Emerging Economics of Hydrogen Production and Delivery, compares the cost of hydrogen under a few different modes of production, as well as potential differences based on year and region. These comparisons include:
The report finds that public programs, especially the recent federal Clean Hydrogen Production tax credits (45V), can offset around half of green H2 production costs, making it competitive with conventional H2 (known as "grey hydrogen," which is produced from natural gas without carbon capture). The projected decline in electrolysis costs could achieve comparable reductions, potentially reaching or beating the DOE's "hydrogen shot" goal of $1/kg by 2030 in some markets. Blue hydrogen costs are also projected to reach cost parity with grey hydrogen by 2030. These costs will likely be competitive with natural gas as a fuel, especially if it has a carbon emissions penalty.
A nationally interconnected market for clean H2 may be slow in coming, according to the report; instead, H2 will likely be produced in close geographic proximity to end users, with costs and technologies used varying by location. Finally, the authors note that there is a clear ladder of priority for use across industries, with hard-to-electrify industrial applications and some heavy-duty transportation at the top of the list. However, meeting the DOE's projected national demand by 2050 of 50 million metric tons per year of H2 could require up to 700 GW of renewable power.
Emerging Economics of Hydrogen Production is authored by Principal Frank Graves, Senior Associate Josh Figueroa, Energy Associate Ragini Sreenath, Senior Energy Analyst Jadon Grove, Senior Research Analyst Lorenzo Sala, and outside expert Stephen Thumb. The full report is available at https://www.brattle.com/insights-events/publications/emerging-economics-of-hydrogen-delivery-and-production/.
The Brattle Group answers complex economic, finance, and regulatory questions for corporations, law firms, and governments around the world. We are distinguished by the clarity of our insights and the credibility of our experts, which include leading international academics and industry specialists. Brattle has 500 professionals across North America, Europe, and Asia-Pacific. For more information, please visit brattle.com.
SOURCE The Brattle Group
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🚀 Climeworks Raises USD 162M to Scale Up Technology 🛠️ DNV Advances Skylark to Enable Safe Scaling of CO2 Pipelines for Carbon Capture and Storage 🍁 Canada’s Rising Role in the G...
Inside This Issue 🏗️ Hyundai Unveils $6B Hydrogen-Powered Steel Mill in Louisiana, Aims to Position State as National Energy Leader 🤝 Deep Sky Inks Next DAC Deal in Germany with Greenlyte Carbon T...
Inside This Issue 🍁 Inside Canada’s Quiet Takeover of the Carbon Capture Industry ✈️ Phillips 66 to Supply SAF to British Airways in Calif 💧 HyVera Distributed Energy Launches Green Hydrogen-On-De...
Next-Gen Construction: 200 & 500kVA Hybrid Fuel-Cell Power USA - English
Elemental Energy launches its latest 200 & 500kVA hybrid hydrogen-BESS solution to optimise power supplies and eliminate combustion generators LONDON, July 3, 2025 /PRNewswire/ -- Elemental En...
Researchers in China have developed a groundbreaking technique that allows proton exchange membrane (PEM) electrolyzers to produce clean hydrogen from impure water, potentially reducing costs and e...
BILBAO, Spain--H2SITE has been awarded the EIC (European Innovation Council) Accelerator program for a project aimed at deploying a first-of-its-kind ammonia cracking unit capable of producing 1 to...
Trump's Budget Bill Boosts Fossil Fuels, Hits Renewable Energy
WASHINGTON - The budget bill the U.S. Senate passed on Tuesday and the House of Representatives is now debating for final approval would dampen development of wind and solar power, kill climate fun...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.