Industrial customers are finding it difficult to commit to using hydrogen due to its high prices, according to a report from the Hydrogen Council and McKinsey & Company.
The Emerging Trade Corridor for Hydrogen and its Derivates report stated clean hydrogen products are 2-4 times more expensive than fossil fuel alternatives, however if demand can be scaled up, a decrease in cost could accelerate.
The report identified mechanisms designed to support the cost-competitiveness of clean products, such as tax credits and carbon penalties, coupled with safeguards against carbon leakage would help enable the large investments required for hydrogen technologies, underpinned by offtake commitments.
