The global low-carbon hydrogen market will require $600 billion in investment, along with policy support, to meet expected exponential demand by 2050, according to new analysis.
In addition, the cost of electrolyzers that are used to produce green hydrogen is expected to fall by 35-65% in the next decade, according to a report produced by Wood Mackenzie. Likewise, a sub-$2/kg green hydrogen cost environment is possible in “most markets” by 2040, the report said.
In order to push developers to invest in green hydrogen production infrastructure, consumers will have to commit to offtake yet-to-be-produced hydrogen, according to Flor Lucia De la Cruz, a senior researcher at Wood Mac.
