The cost of industrial chemistry is largely the amount of energy required to produce a ton of chemical. There are different ways to make any chemical all of whi

The cost of industrial chemistry is largely the amount of energy required to produce a ton of chemical. There are different ways to make any chemical all of which have different cost structures depending on the application. Making hydrogen from water is extremely electricity intensive, around 50 MWh per ton. Even aluminum production from ore, which is famously electricity intensive, only requires a small fraction of the energy input that hydrogen requires when produced this way. Making hydrogen from methane has a more expensive feedstock (methane versus water) but requires vastly less energy which makes it much cheaper overall. I would guess that methane feedstock also requires a less expensive plant per ton of production capacity, which would also lower costs.