Today is Thursday, September 07, 2023.
In times when hydrogen cells arrive in pickups such as Toyota Hilux Hydrogen - or Hilux H2 , as announced the day before yesterday in England, and the University of São Paulo is working on the on-board generation of hydrogen from ethanol, in an excellent solution considering the already existing refueling infrastructure in Brazil, monitoring the costs involved - and financing - is increasingly relevant.
A few days ago, the consultancy firm CELA (Clean Energy Latin America) launched the first green hydrogen production cost index. Differentiating Brazilian states. And information of free access.
The work is based on proprietary modeling of a series of parameters: tax issues, solar and wind availability, water sources (for electrolysis), logistics, investment in plants, and operating and capital costs.
In this first edition, which will be updated every 6 months, it is identified that already in some Brazilian locations it would be possible to produce green hydrogen at a cost between USD 2.87/kg and USD 3.56/kg.
With improvements and incentives, such as the European Hydrogen Bank, which we will discuss below, these values could reach competitive levels of USD 1.69/kg.
Last August 30th, the European Commission published the terms and conditions (T&C) of the long-awaited 1st auction by the European Hydrogen Bank, perhaps the most important support mechanism for hydrogen consumers in Europe.
The T&C for this 1st auction scheduled for 23 November 2023, provide information for potential bidders to prepare their proposals. The main conditions would be:
(1) eligible projects will have 5 years to be commissioned
(2) maximum price set at EUR 4.5/kg H2
and (3) guarantee set at 4% of expected revenue
A few days ago we also reported on efforts in the United States to reduce the cost of producing clean hydrogen, from $2/kg in 2026 to $1/kg by 2031.
By the way, tomorrow's post will make reference to the $8.4 billion green hydrogen plant, the largest in the world, in Saudi Arabia.
The competition for green hydrogen is evident.
Click on the image below to download the "Levelled Cost of Green Hydrogen in Brazil" by CELA.
