Onsite green hydrogen production cost is expected to halve by 2030, signalling a boost to South Korea’s hydrogen ambitions, says energy consultancy Wood Mackenzie.
Under President Moon Jae-In’s administration, the South Korean Government has announced ambitious plans to become a hydrogen-based economy by 2050. This includes plans for three hydrogen-powered cities by 2022 and accelerating deployments of fuel cell electric vehicles (FCEVs), all of which have spiralled the country into a frenzied race to invest in hydrogen.
Speaking at a media briefing today, Wood Mackenzie Research Director Prakash Sharma said, “Cost is the biggest challenge today as green hydrogen costs two to four times more than fossil-fuel hydrogen. This is set to change by 2030. Net-zero emissions policies, falling renewables costs and strong business activity in electrolyser manufacturing and efficiency gains could deliver up to 50% cost decline for green hydrogen by 2030.”
“This magnitude of cost reduction will require sub-$30 per megawatt-hour renewable electricity prices, large size electrolyser deployments and high load hours.”
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