The development of electric vehicles is seen by some as an effective way to reduce greenhouse gas emissions, while others believe that green hydrogen can help reach climate change targets.
Green hydrogen is viewed as an excellent means of reducing greenhouse gas emissions from transportation, especially heavy-duty transportation. Due to the renewable energy source, the component is expensive and inefficient.
According to Ohmium, the cost of producing green hydrogen once those facilities are operational will be less expensive than diesel fuel by 2023. By increasing production, hydrogen might become a viable alternative.
The company, which is currently building a facility in India that will house a 2GW electrolyzer, is extremely confident about the costs of green hydrogen in the future. By 2023, it expects the price to be around $2 or $2.5 per kilogram, instead of the current $10. This price includes all costs associated with production, compression, and shipment, plus the seller’s profit margin.
Although the cost is comparable to fossil fuels, the company says that it is still not on par with battery-powered systems. Due to this, Ohmium expects the cost of green hydrogen to fall to a dollar per kilogram in two years, in 2025. As a result, the component’s history will have changed forever, and its growth will be accelerated.
To meet future energy demands, we will need to increase both our production capacity through investments in electrolysers and our electrical capacity. Please keep in mind that green hydrogen is still (nearly) in its infancy in terms of delivery and production. It will take several years before the system is reasonably functional due to the high cost of these components.