Post by account_disabled on Mar 13, 2024 3:16:26 GMT -5
Chuck Hayes, Global Technical Director, Swagelok Cost is one of the factors that most influences the large-scale adoption of a new technology. It is certainly an important consideration for people evaluating alternative fuel sources. Regardless of its end use, the widespread acceptance of hydrogen will depend on the profitability of its production and use. Money and question mark iconMany people ask: "Is hydrogen expensive? Is it prohibitive for regular drivers or industrial users?" The short answer is: "No, at least not in the long term." Although hydrogen may be slightly more expensive than other fuel sources today, experts predict those prices will drop dramatically in the coming years. In the third installment of our hydrogen myth-busting series, we'll look at why hydrogen is a cost-effective alternative fuel that end users can rely on.
Hydrogen myths More articles in this series: Why hydrogen is a safe fuel source Why hydrogen offers satisfactory autonomy Why hydrogen can meet environmental and sustainability standards SEE MORE ABOUT CLEAN ENERGY Did you know that...? US Department of Energy Earthshots Logo The US Department of Energy's (DOE) Earthshots program specifically aims to encourage the development of hydrogen as a fuel to further reduce its costs. According to Deloitte , hydrogen fuel cell buses will be less expensive to operate than battery-powered and internal BYB Directory combustion buses. Forecasts indicate that green hydrogen will be less expensive than natural gas in 2050. Hydrogen drops in price While it is true that traditional fuels are currently cheaper, hydrogen costs are expected to decrease considerably as production increases.
This is due to several reasons. Major oil producers are significantly lowering their production levels, resulting in unsustainably low prices, and are also making long-term decarbonization commitments. These measures are likely to make gasoline or diesel more expensive for consumers who drive internal combustion engine (ICM) vehicles. Meanwhile, the price of green hydrogen continues to fall. Experts suggest that within ten years, the cost of hydrogen will be competitive with traditional fuel sources. The costs of renewable energy sources—solar, wind, hydro—used for green hydrogen production also continue to fall, which will further influence its price. Additionally, as governments around the world pass stricter rules on carbon dioxide emissions, they are expected to offer subsidies to incentivize the growth of clean energy.
Hydrogen myths More articles in this series: Why hydrogen is a safe fuel source Why hydrogen offers satisfactory autonomy Why hydrogen can meet environmental and sustainability standards SEE MORE ABOUT CLEAN ENERGY Did you know that...? US Department of Energy Earthshots Logo The US Department of Energy's (DOE) Earthshots program specifically aims to encourage the development of hydrogen as a fuel to further reduce its costs. According to Deloitte , hydrogen fuel cell buses will be less expensive to operate than battery-powered and internal BYB Directory combustion buses. Forecasts indicate that green hydrogen will be less expensive than natural gas in 2050. Hydrogen drops in price While it is true that traditional fuels are currently cheaper, hydrogen costs are expected to decrease considerably as production increases.
This is due to several reasons. Major oil producers are significantly lowering their production levels, resulting in unsustainably low prices, and are also making long-term decarbonization commitments. These measures are likely to make gasoline or diesel more expensive for consumers who drive internal combustion engine (ICM) vehicles. Meanwhile, the price of green hydrogen continues to fall. Experts suggest that within ten years, the cost of hydrogen will be competitive with traditional fuel sources. The costs of renewable energy sources—solar, wind, hydro—used for green hydrogen production also continue to fall, which will further influence its price. Additionally, as governments around the world pass stricter rules on carbon dioxide emissions, they are expected to offer subsidies to incentivize the growth of clean energy.