Report Reveals Cost Structures of Hydrogen Production, Highlights Federal Support’s Role in Making Green Hydrogen Competitive.

A report by The Brattle Group, The Environmental Defense Fund, has examined the economics of hydrogen production and delivery. The report, titled “Emerging Economics of Hydrogen Production and Delivery,’explores the cost structures of various types of hydrogen, from ‘green’ hydrogen generated via renewable-powered electrolysis to ‘blue’ hydrogen produced through carbon capture and even nuclear-powered ‘pink’ hydrogen. The study also discusses the impact of current tax incentives, research support from the US Department of Energy (DOE), and the effects of rapid commercialization on these costs. It suggests that federal programs can neutralize around half of the production costs of green hydrogen, making it a viable competitor against conventional hydrogen. However, the report also warns that developing a nationally interconnected market for clean hydrogen could face a slow roll-out due to its production location being near its users.