In 2021, the US government set the hydrogen industry an ambitious target: to deliver a levelised cost of green hydrogen of $1/kg within a decade, without the maximum $3/kg production tax credit. Three years later, on the back of rising costs and project slow-downs, the so-called “Hydrogen Shot” target seems further away than ever.
In its new electrolysis technology assessment unveiled this week, the Department of Energy (DOE) acknowledged the headwinds faced by the industry, noting that the cost profile of green hydrogen has been pushed up by supply-chain issues, inflation and higher electrolyser system installation costs.
But, it says, the target is still within reach as long as the industry succeeds in achieving technological advancements in electrolyser technology, scales up the manufacturing of that technology and, most importantly, aggressively reduces the cost of electricity produced by renewables and nuclear.
