Green Hydrogen Production Costs: 2024 Benchmark

As of 2024, green hydrogen production costs in Europe range from €4-7/kg depending on electricity prices, electrolyzer efficiency, and utilization rates. Key cost drivers: renewable electricity (50-60% of LCOH), electrolyzer CAPEX (25-30%), and O&M (10-15%). Costs are falling rapidly—electrolyzer prices dropped 40% since 2020. Pathways to competitiveness: securing low-cost PPAs (target <€30/MWh), achieving high capacity factors (>4,000 hours/year), and accessing grant support (IPCEI, H2Global). Projects with co-located renewables and merchant offtake are reaching €3.5-4.5/kg in Iberia and Northern Europe. Policy support remains critical—most projects rely on CAPEX grants or price guarantees to close the gap with grey hydrogen (€1.5-2.5/kg).