What are the main factors influencing hydrogen production costs?
Hydrogen production costs mainly depend on the chosen production method, such as electrolysis, natural gas reforming, or biomass-based processes. For green hydrogen produced via electrolysis, electricity price is the dominant cost factor. Additional drivers include electrolyzer capital costs, utilization rates, infrastructure investments, as well as storage and transport expenses. Economies of scale and declining renewable electricity prices are key to improving the competitiveness of low-carbon hydrogen.