Hydrogen made from renewable power will compete in price with gas produced from fossil fuels within two decades, according to a new analysis by Wood Mackenzie Ltd. The cost of green hydrogen will drop 64% by 2040, the report said. Hydrogen is seen as key way to cut global greenhouse gases as it could reduce the use of traditional fuels in industry and transport.
Increased support for hydrogen by European countries has made green hydrogen a key element to a low carbon future. The European Union’s Green New Deal and Germany has pledged to invest 9 billion euros (USD $10.6 billion) to create local green hydrogen production.