{"id":3329,"date":"2020-01-20T10:51:33","date_gmt":"2020-01-20T10:51:33","guid":{"rendered":"https:\/\/hydrogencouncil.com\/?p=3329"},"modified":"2024-02-27T19:21:06","modified_gmt":"2024-02-27T18:21:06","slug":"path-to-hydrogen-competitiveness-a-cost-perspective","status":"publish","type":"post","link":"https:\/\/hydrogencouncil.com\/en\/path-to-hydrogen-competitiveness-a-cost-perspective\/","title":{"rendered":"Path to Hydrogen Competitiveness: A Cost Perspective"},"content":{"rendered":"\t\t
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As scale up of hydrogen production, distribution, equipment and component manufacturing continues, cost is projected to decrease by up to 50% by 2030 for a wide range of applications, making hydrogen competitive with other low-carbon alternatives and, in some cases, even conventional options.<\/p>\n\n

Significant cost reductions are expected across different hydrogen applications. For more than 20 of them, such as long-distance and heavy-duty transportation, industrial heating, and heavy industry feedstock, which together comprise roughly 15% of global energy consumption, the hydrogen route appears the decarbonisation option of choice \u2013 a material opportunity.<\/p>\n\n

The report attributes this trajectory to scale-up that positively impacts the three main cost drivers:<\/p>\n\n

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  1. Strong fall in the cost of producing low carbon and renewable hydrogen;<\/li>\n\n
  2. Lower distribution and refuelling costs thanks to higher load utilisation and scale effect on infrastructure utilisation; and<\/li>\n\n
  3. Dramatic drop in the cost of components for end-use equipment under scaling up of manufacturing.<\/li>\n<\/ol>\n\n
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    To deliver on this opportunity, supporting policies will be required in key geographies, together with investment support of around $70 billion in the lead up to 2030 in order to scale up and achieve hydrogen competitiveness. While this figure is sizable, it accounts for less than 5% of annual global spending on energy. For comparison, support provided to renewables in Germany totalled roughly $30 billion in 2019.<\/p>\n\n

    The study is based on real industry data, with 25,000 data points gathered and analysed from 30 companies using a rigorous methodology. The data was collected and analytical support provided by McKinsey & Company, and it represents the entire hydrogen value chain across four key geographies (US, Europe, Japan\/Korea, and China). Data was also reviewed by an independent advisory group comprised of recognised hydrogen and energy transition experts.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    View and download the full report<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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    Download a one-pager summarizing the study's key findings<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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    This latest Hydrogen Council report shows that the cost of hydrogen solutions will fall sharply within the next decade \u2013 and sooner than previously expected.<\/p>\n","protected":false},"author":1,"featured_media":7643,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[131,132,133,125,134,116,75,135,136,115,137,114],"tags":[146],"class_list":["post-3329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-africa-region-intelligence","category-asia-pacific-region-intelligence","category-central-south-america-region-intelligence","category-cost","category-europe-region-intelligence","category-format-intelligence","category-intelligence","category-middle-east-region-intelligence","category-north-america-region-intelligence","category-region-intelligence","category-report-format-intelligence","category-subject-matter-intelligence","tag-report"],"acf":[],"yoast_head":"\nPath to Hydrogen Competitiveness: A Cost Perspective | Hydrogen Council<\/title>\n<meta name=\"description\" content=\"This 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