When Will Hydrogen Become Cheaper Than Diesel?
While there are multiple routes to reducing greenhouse gas emissions in the UK, there is a shared problem of costing it against current gas use. Hydrogen Industry Leaders looks at why Ohmium think green hydrogen can become cheaper than diesel by 2023.
Green hydrogen is an important way of reducing ghg emissions, especially in the transport sector. However, the cost of hydrogen production is currently very high and has various questions surrounding efficiency.
Ohmium expresses its view that rolling out hydrogen production across the globe will reduce costs. They estimate that once facilities in the country are built, hydrogen will be less expensive than diesel.
Chairman of Ohmium, Ahmad Chatila, has previously stated that: “By 2023, green hydrogen will be lower cost than diesel at the pump for passenger cars in most cities. We see the opportunity for hydrogen cars to immediately rollout in India.”
The roadmap to green hydrogen estimates that it could cost as little as $1 per kg by 2025. By 2023 currently stands, consumers will be spending $2.5 per kg. This will be still lower than diesel costs in some areas.
As it stands, the current capacity is at 0.5 GW, which, will rapidly increase to 2 GW over the next two years. This is needed to meet future demands of hydrogen as a fuel source. To achieve this, there are calls for the government to invest in electrolysers and the wider electricity grid.