Aurora Energy Research has highlighted the Nordic and Iberian regions as front-runners in producing renewable fuels of non-biological origin (RFNBO)-compliant hydrogen at prices attractive to offtakers.
Due to cheap, abundant renewable electricity and the growing use of hybrid Power Purchase Agreements (PPAs) – now the preferred procurement model – the Nordics and Iberia are achieving levelised costs of hydrogen (LCOH) between €5.4 and €10.6/kg.
While hydrogen investment across Europe remains difficult – with Westwood Global Energy estimating that only 17% (12GW) of planned EU projects will be built – these two regions stand out as the most likely to deliver commercially viable, RFNBO-compliant hydrogen.
The European Commission estimates that RFNBO hydrogen will typically fall in the €4 tp €8/kg range under Renewable Energy Directive impact (RED III) assessments, depending on local electricity costs and electrolyser load factor.
