A cross-sector group of companies including utilities Snam SpA, Ørsted A/S and Iberdrola SA has launched a global coalition to accelerate the scaling of green hydrogen production 50-fold in the next six years.
The Green Hydrogen Catapult will work to cut the cost of renewable hydrogen — produced using green electricity to power an electrolyzer — in half to under $2/kilogram and facilitate the deployment of 25 GW of production capacity by 2026.
Getting costs below $2/kg could represent a potential tipping point that would make green hydrogen and its derivative fuels the energy source of choice across multiple sectors, including steel and fertilizer production, power generation, and long-range shipping, the group said, referencing analysis by the Hydrogen Council. In those sectors, the group sees ample near-term demand in Europe and elsewhere.
The EU has already pledged to facilitate 6 GW of green hydrogen capacity by 2024, and 40 GW by the end of the decade, with existing users of hydrogen, such as refiners and fertilizer-makers, first in line to make use of the renewable fuel.
The founders of the Green Hydrogen Catapult, which also includes energy companies CWP Renewables Ltd., Envision Energy Ltd. and ACWA Power International, along with chemicals manufacturer Yara International ASA, will collaborate to accelerate technology development, component manufacturing, construction, market development and investment.
In total, the group wants to see around $110 billion in investments, with the creation of 120,000 jobs to follow.