Global Renewable and Low-Carbon Gas Report 2021 - Cost Comparison

All forms of renewable gases are more expensive than their fossil-derived counterparts, so there will be a strong reliance on government policy to create a business case for significant investments in renewable gases. Carbon capture and storage adds a relatively small premium to the cost of grey hydrogen and if, as expected, carbon prices increase over time, blue hydrogen can become more economic than grey hydrogen. Green hydrogen is significantly more expensive than any other form of renewable gas, but costs are expected to fall, as the costs of both renewable electricity and electrolysers decreases over time.