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Green hydrogen - why should I care what it costs?
Credit: Mihaly Koles on Unsplash

Green hydrogen - why should I care what it costs?

If you care about sustainability being financeable, you should also care about how much it costs to make green hydrogen.

Summary: I know this might seem a strange thing to say - but if you care about sustainability being financeable, you should also care about how much it costs to make green hydrogen. If you live in the US, the outlook is now encouraging, less so if you live in Europe (although that may change quickly).

Why this is important: Many people think about the green transitions as just being about stopping using fossil fuels and using green electricity instead. But that doesn't work everywhere. For many industries electrification is not enough. In heavy industry and transport we need a different solution, one that looks more like fossil fuels, but without the negative impacts. This is where green hydrogen comes in.

The big theme: Green hydrogen could potentially drive the decarbonisation of how we make steel, fertiliser and plastics, and how we power our heavy transport. According to Our World in Data industry alone accounts for nearly a quarter of our global energy related GHG emissions, it's bigger than transport and our buildings. And it's not an exaggeration to say that if we cannot decarbonise industry in a financially viable way, then our net zero targets are just vague promises in the wind.



The Detail


Green hydrogen - it really matters how much it costs

So, why does green hydrogen not get the same attention as say electric vehicles (EV’s)? That's easy. Unlike EV’s it's deeply technical and complicated - and many analysts hide behind this. But, if we don’t understand it, how can we decide if we are doing the right thing?

We have written a number of blogs on why green hydrogen is so important, including this recent quick insight on greening ammonia. For now, you don't need to know how it's made, or any of the technical stuff behind the solutions (although we will come to these in future blogs). You just need to understand one very big issue - COST.

Quick Insight: greening ammonia - heat, pressure and hydrogen
Ammonia can be harmful to us & its production has a CO2 footprint as big as Brazil’s. So why is it important and how can we make it greener?

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