January 27 (Renewables Now) - The cost of hydrogen solutions could drop by 50% this decade, but it will take around USD 70 billion (EUR 63.5bn) in investments and favourable policies to make this vision a reality in 2030, according to the Hydrogen Council.
The Belgium-based association has concluded, based on its latest report "Path to Hydrogen Competitiveness: A Cost Perspective," that costs are projected to go down significantly across different hydrogen applications as the value chain continues to evolve.
According to the report, scale-up will drive down costs of low-carbon and renewable hydrogen production, distribution and refuelling and the manufacturing of components for end-use equipment, even before taking technological breakthroughs into account.
In several applications, or 22 as the report states, hydrogen is expected to achieve competitiveness sooner than previously anticipated and is shaping up to be the go-to solution for decarbonisation. Hydrogen applications in commercial vehicles, trains, long-range transportation, building heating, among others, will be able to withstand competition from low-carbon alternatives and even conventional solutions.
Apart from the required investment and government policy adjustments, the report’s authors say that hydrogen will need a healthy market for the industry to grow and thrive in the next decade and call on stakeholders to look wide and focus on creating and sustaining the demand.
(USD 1.0 = EUR 0.908)