1、|0FEBRUARY 2024COMMISSIONED BY Environmental Defense FundPREPARED BYFrank Graves Josh Figueroa Ragini SreenathLorenzo Sala Jadon Grove Stephen ThumbEmerging Economics of Hydrogen Production and D|1We compare costs under a few different modes of production,or“colors,”of hydrogen including green pink

2、and blue,but most focus is on green hydrogen.We compare costs if H2 is produced intermittently(when wind or solar power are available)versus if it is produced in“steady state”at a uniform level throughout the year(which requires overbuilding the renewable power and including storage).Comparisons are

3、 between 2023 and 2030,when many developers hope to be bringing announced projects to market(for which they also project technology improvements used herein).Due to pronounced differences in feedstock costs,H2 costs will vary by region.We compare California to the Gulf Coast and to New York,which co

4、rrespond to where most H2 development projects are being pursued at this time.Delivery costs are evaluated for pipelines and trucking,but not for distribution scale pipes or conversion expenses of hydrogen customers.Focus is on getting hydrogen to market areas,not on end-use demands or priorities.Th

5、is study reviews how the production and delivery costs of hydrogen are changing under the influence of recent strong tax incentives,DOE support for hydrogen research and hub development,rapidly growing commercial scale,and projected technology improvements.Purpose and ScopeThis work was supported in

6、 part by the Environmental Defense F|2Results indicate that public programs,especially the recent Clean Hydrogen Production tax credits for green H2 can offset around half of H2 production costs,making it close to competitive with conventional(grey)H2.Projected large reductions in electrolysis costs