While Elon Musk and other naysayers have condemned hydrogen, the energy is expected to see a breakthrough over the new decade: a 50 percent cost reduction — making it highly competitive with traditional fuel and low-carbon alternatives. div[id^="vemba-player-sticky-"]:not(.vemba-player-sticky) { margin-top: 15px; } [id^='vemba-close-']:before { content: "close[x]"; position: absolute; top: 28px; background: black; color: white; z-index: 999999; pointer-events: all; padding: 2px 4px!important; } [id^="vemba-close-"] { background: #000; color: transparent !important; float: right; pointer-events: none; margin: 0!important; width: auto!important; padding: 2px 5px!important; background: none; }
That comes from a new study by Hydrogen Council and McKinsey & Co., Path to Hydrogen Competitiveness: A Cost Perspective. The report outlines three core market drivers: a steep drop in production costs, higher load utilization cutting distribution and refueling costs, and additional cost drops from scaling up of end-use equipment manufacturing.
The study looked at 25,000 data points gathered and analyzed from 30 global companies with cost reductions expected across several different hydrogen applications. These sectors include long-distance and heavy-duty transportation, industrial heating, heavy industry feedstock, and others, which make up about 15 percent of global energy consumption.
Writers of the study see the need for supportive government…
