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The reason it's cost effective in those circumstances is because it's produced from hydrogen rich fossil fuels. If you want to use renewable energy to produce i

The reason it's cost effective in those circumstances is because it's produced from hydrogen rich fossil fuels. If you want to use renewable energy to produce it, you'd likely have to fall back onto electrolysis, which is cost prohibitive because of material cost. If you check out DOE research, they point out capital necessary for materials as the factor that needs to come down, as efficiency is already > 50%: https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.hydrogen.energy.gov/pdfs/20004-cost-electrolytic-hydrogen-production.pdf&ved=2ahUKEwi0sar9iL7zAhV-GVkFHSNLAVkQFnoECBUQBg&usg=AOvVaw0NMnlH5q3POh53QY6G-yWs https://www.google.com/url?sa=t&source=web&rct=j&url=https:/... If you just want 'hydrogen from any source' and aren't trying to get off fossil fuels, then yes, the materials costs are that horrible. But I don't believe that's where anyone is going with this conversation.

pfdietz 5y ago
That study assumes PEM electrolyzers. If one uses alkaline electrolysis one doesn't need platinium group elements or proton exchange membranes. The efficiency is slightly lower (although I've seen a claim it's actually just as good in practice), but the cost could be very low.
coderenegade 5y ago
China is already making green hydrogen today at USD $2.20-2.40/kg, in Ningxia, using alkaline electrolyzers. This is in line with the cost of blue hydrogen, and getting close to the cost of grey. Mostly what's missing at the moment is economies of scale, which is coming. For example, a facility ten times the size of the Ningxia one goes online in 2023, in Inner Mongolia. Combine this with standard cost reductions in PV and wind, and electrolysis of hydrogen will likely be cheaper than SMR by the end of the decade.