Climate change: green hydrogen to get cheaper by 2030 as China drives policies favouring clean fuel to control emissions
- The cost of green hydrogen could fall to around US$1.40 to US$2.30 per kg by 2030 from US$6 recently, according to Shell Hydrogen
- China has prioritised hydrogen as an emerging industry under its 14th five-year plan
The cost could drop to around US$1.40 to US$2.30 per kg by 2030 in regions with abundant renewable wind and solar resources such as the Middle East, Australia and northwestern part of China, according to Shell Hydrogen, versus as high as US$6 in recent trades. They may converge with other grades of hydrogen by 2032 or 2034.
“Those regions will be able to reach a level of very attractive prices by producing green hydrogen at a level comparable to grey hydrogen today,” Tobias Chen, its head of Asia Pacific, said during the virtual Asian Financial Forum on Tuesday.
China, the world’s largest producer of hydrogen, has been stepping up efforts to transition to cleaner fuels under its net-zero emissions goal by 2060. It has prioritised hydrogen as an emerging industry under the 14th five-year plan.
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Inside the Daxing International Hydrogen Energy Demonstration Zone
The output value for hydrogen in China could reach 1 trillion yuan (US$157 billion) by 2025, according to China Hydrogen Energy and Fuel Cell Industry Alliance. By 2030, demand for hydrogen will reach 35 million tonnes, and the fuel will make up at least 5 per cent of the energy-consumption mix by then, it added.