‘Hydrogen Economy’ Offers Promising Path to Decarbonization


  • The falling cost of making hydrogen from wind and solar power offers a promising route to cutting emissions in some of the most fossil fuel dependent sectors of the economy, such as steel, heavy-duty vehicles, shipping and cement.
  • The cost of the electrolyzer technology to do this has fallen by 40% in the last five years
  • If the clean hydrogen industry can scale up, many of the hard-to-abate sectors could be decarbonized using hydrogen, at surprisingly low costs”.
  • The study found that a carbon price of:
    • $50/tCO2 would be enough to switch from coal to clean hydrogen in steel making by 2050
    • $60/tCO2 to use hydrogen for heat in cement production
    • $78/tCO2 for making chemicals like ammonia, and
    • $145/tCO2 to power ships with clean fuel, if hydrogen costs reach $1/kg.

Source: Hydrogen Economy Outlook by BloombergNEF, 30th March 2020