Hydrogen aims for cost parity with oil

January 21, 2021 // By Nick Flaherty
Hydrogen aims for cost parity with oil
Electrolyser maker Nel launches $1.50/kg target for green renewable hydrogen to outcompete oil

Norwegian hydrogen technology developer Nel has detailed plans to produce hydrogen from renewable sources at $1.50/kg (€1.24/kg) to compete with fossil fuels such as petrol and diesel.

Scaling up of production to multi-GW scale, growing the organization to add capacities and capabilities, and investing in technology for the near- and long-term are crucial components in the strategy, says CEO Jon André Løkke.

This is backed up by a major project to convert a coal power station in Hamburg, Germany, into a massive 100MW hydrogen electrolyser. 

"Green renewable hydrogen is set to outcompete fossil alternatives, and Nel is placed in the centre of this transition,” said Løkke at Nel. “We’re launching our target which should enable our customers in certain markets to produce green renewable hydrogen from a large-scale Nel facility at $1.5/kg from low cost renewable power, already within 2025. Achieving this would allow green hydrogen to start to reach fossil parity, representing one of the most significant achievement for zero-emission solutions and a carbon neutral planet.”

Hydrogen fuel cell technology will be a key capacity for electric vehicles in the future says Malcolm Penn of analyst Future Horizons as well as electric aircraft.

“The next step after battery electric vehicles is hydrogen and its good news for semicodnuctors as there more electronics required than in an EV,” said Penn. “It is gaining traction but the big issue is generating the hydrogen. There’s a lot of work going on the EU on that."

Next: Green hydrogen production 

Nel electrolyser stack to container for green hydrogen production

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