Not Even Carbon at 200 Euros Can Make Green Hydrogen Competitive
- EU hydrogen will need billions of euros of subsidies: study
- Green hydrogen is a key tool for EU’s 2050 climate goals
Ventilation fan units beside the hydrogen electrolysis plant at the Wesseling green hydrogen refinery in Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Even if European carbon prices more than tripled to 200 euros ($236), hydrogen from renewable energy would still struggle to compete with fossil fuels without further government support.
That’s the conclusion from research by consultants at Guidehouse and published by German think tank Agora Energiewende. To make the average renewable hydrogen project competitive with a fossil alternative will require annual subsidies of as much as 24 billion euros this decade, they said.