Our modelling suggests that zero carbon power can be delivered for considerably less the diesel-fuelled alternatives and less than other zero carbon options.

The Falling Cost of Renewables

A report published by the Hydrogen Council predicts that the cost of renewable hydrogen production could halve by 2030, putting Australia in a prime position to become a leading producer of Green Hydrogen.

The predictions have been detailed in an assessment by global consultancy McKinsey, which finds that investment in developing hydrogen technologies could see renewable hydrogen bridge the cost gap with “brown” or “blue” hydrogen (produced using fossil fuels) and also see hydrogen become cost competitive with conventional energy sources like oil and gas.

With a 50% drop in hydrogen costs achievable by 2030, McKinsey expects renewable hydrogen would be cost competitive across more than 20 applications, including commercial vehicles, long-range transport, industrial heating, residential heating and cooling currently served by gas and as a “balancing” source in electricity systems.

Falling Cost Of Solar PV + Wind

The continued dramatic falls in the cost of solar and wind technologies are one of the primary drivers in the falling cost of hydrogen production.

Further cost savings are  achievable by rapidly scaling up the number and size of the electrolysers which are used to produce hydrogen with green electricity.

These finding are a game-changer for the global energy market, with McKinsey estimating that as much as 15% of the world’s energy consumption could be served at the lowest cost by renewable hydrogen by 2030.