The cost of Green hydrogen plant is estimated to range from $3.5 to $5 per kg of hydrogen produced. This cost can vary depending on factors like the location, renewable energy sources used, and the technology employed. A large-scale PEM plant could cost around $3.93 per kg. The cost of green hydrogen is currently higher than grey hydrogen produced through steam methane reforming (SMR). However, projections indicate that the cost of green hydrogen could decrease to as low as $2 per kg by 2040. The levelized cost of green hydrogen (LCOH) in India is estimated to be between $3.5-5 per kg in 2024.
Factors Affecting Green Hydrogen Cost:
Renewable Energy Costs: The cost of renewable energy (solar and wind) is a major driver of green hydrogen production costs.
Electrolyzer Technology: The efficiency and cost of electrolyzers play a crucial role.
Location: Geographic location and access to renewable energy resources influence costs.
Capital Costs: The initial investment in the plant and infrastructure affects the total cost.
Operating Costs: Ongoing costs like electricity, water, and maintenance contribute to the overall cost.
Transmission and Storage Costs: Transporting and storing hydrogen add to the overall cost.
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