Green hydrogen is produced through electrolysis using renewable electricity to split water into hydrogen and oxygen, creating a carbon-free energy carrier. Current production costs are $3 -6 per kg, with targets to reach $1-2 per kg by 2030 through improved electrolyzer efficiency and scale. Global capacity is expected to reach 25 GW by 2026, up from less than 1 GW in 2020.
How It Works
Electrolyzers use electricity to split water (H2O) into hydrogen and oxygen through electrolytic processes. Proton Exchange Membrane (PEM) electrolyzers operate at 50-80°C with high current densities, while alkaline electrolyzers operate at 60-80°C using potassium hydroxide solution. Solid Oxide Electrolysis Cells (SOEC) operate at 700-1000°C with higher efficiency but are less mature. The process requires 50-55 kWh of electricity to produce 1 kg of hydrogen.
Advantages
Zero carbon emissions when powered by renewables, can store large amounts of energy for long periods, versatile applications across transportation and industry
Challenges
High electricity consumption (50+ kWh per kg H2), expensive production costs currently $3-6 per kg, requires new infrastructure for storage and transport, low round-trip efficiency (25-35%), safety concerns due to hydrogen's flammability, and competition from cheaper grey hydrogen.