In a Wall Street Journal article, Guidehouse says production technology and policy are expected to make green hydrogen more competitive in the next decade
To reduce emissions from power plants and pipelines, more US utilities are exploring green hydrogen, which is produced by wind and solar energy instead of fossil fuels. Green hydrogen is costly, however, with only 1% of production classified as green.
In an article for the Wall Street Journal, Dan Hahn, partner and leader of the Energy Providers practice at Guidehouse, said cost has been one of the primary factors contributing to the slow adoption of green hydrogen for utilities.
Hahn said producing green hydrogen typically costs 3 to 6 times as much hydrogen from fossil fuels. Advances in production technology and policy implementation are expected to curb costs in the near term and over the next decade.
“We think that even in the next two to three years, costs will decrease because of the investments that are being made in the market,” he said.
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