Investments in green hydrogen are increasing as gas prices rise
LONDON (Reuters) – New investment in green hydrogen has exceeded $70 billion since the start of the war in Ukraine, a study showed on Tuesday, as rising gas prices impacted the cost of producing hydrogen from hydrocarbons.
Green hydrogen, produced by splitting water into hydrogen and oxygen using renewable sources such as solar and wind power, is believed to be a cleaner energy source for the future, but the technology is still in its infancy and is still relatively expensive.
The cost of producing hydrogen from fossil fuels has suffered from soaring gas prices, which have risen by more than 70% since the war in Ukraine began last February.
According to the study published by think tank Carbon Tracker, the price of so-called “grey” hydrogen – made from natural gas – would now exceed the price of green hydrogen.
If investments in green hydrogen continue steadily over the coming years, production costs could fall below $2 per kilo by 2030, compared to an average price of $3.80 to $5.80 per kilo before the start of the conflict in Ukraine.
(Report Nina Chestney; Version française Camille Raynaud)
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