Australia and the US are among those foreseeing that green hydrogen will kick fossil fuels out of the global hydrogen supply chain.
The emerging green hydrogen industry threatens to squeeze natural gas out of the global hydrogen supply chain, but so far the threat has been an empty one due to high costs. Hydrogen produced from natural gas currently ranges about US$1.00 to $3.00, while green hydrogen costs three times as much, or more. Government subsidies can make up some of the difference, but the real impact won’t be felt until new technologies and economies of scale kick in.
“The model assumes that small-scale to large-scale wind turbine -based and photovoltaic -based power generation plants are directly coupled with an electrolyser array and utilises hourly generation data for the Gladstone hydrogen-hub region,” the researchers explained.The US is also not taking the competition standing still. The US Department of Energy has set an ambitious goal of bringing down the cost of green hydrogen to $1.
“The projects are expected to enable U.S. manufacturing capacity to produce 14 gigawatts of fuel cells per year, enough to power 15% of medium- and heavy-duty trucks sold each year, and, enough to produce an additional 1.3 million tons of clean hydrogen per year,” the Energy Department explained, noting that “industrial and chemical processes like steelmaking and fertilizer production” are the target markets, along with heavy-duty transportation.
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