Green hydrogen, which is currently one of the more expensive forms of clean energy, could drop in price by as much as 75% over the next decade thanks to China’s increased investments in renewable energy, reports the South China Morning Post. The price could fall to around $1.40 to $2.30 per kg by 2030 in regions with abundant renewable wind and solar resources such as the Middle East, Australia and northwestern part of China, according to Shell Hydrogen, versus as high as $6 in recent trades. They may converge with other grades of hydrogen by 2032 or 2034.
“Those regions will be able to reach a level of very attractive prices by producing green hydrogen at a level comparable to grey hydrogen today,” Tobias Chen, its head of Asia Pacific, said during the virtual Asian Financial Forum on Tuesday.
China, the world’s largest producer of hydrogen, has been stepping up efforts to transition to cleaner fuels under its net-zero emissions goal by 2060. It has prioritized hydrogen as an emerging industry under the 14th five-year plan.