We’ve heard it before… “the time for hydrogen is now!” So what makes this time different? The answer to that – why hydrogen’s time really is here – is two-fold. First, costs are dropping dramatically. In Nel, we’re working hard to make that happen across all our product lines: alkaline electrolysers, PEM electrolysers, and hydrogen fuelling stations.
A good example of that is our investment in Herøya, the new alkaline electrolyser manufacturing plant we’re building. We’re expanding capacity by close to 15 times that of our current factory in Norway. Just this first step alone is expected to cut electrolyser costs almost in half. And with the addition of three more lines, we’ll cut the costs almost in half again. That’s just one example!
And the second difference in what makes hydrogen’s time now also has to do with costs: mainly, that the cost of renewable energy has dropped dramatically in the past years and continues to do so. In many parts of the world, the costs of wind and solar are already out-competing fossil. This is crucial because the main cost factor of hydrogen is the energy input.
When you combine these two cost factors, it really is a killer combination. And it will lead to, as we like to talk about in Nel, fossil parity.
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