Low-carbon hydrogen production to nearly triple in North America by 2030

September 7, 2021

Low-carbon hydrogen production in North America is expected to nearly triple by 2030, reaching 1.4 million tonnes per annum (mtpa).

That’s according to a GlobalData report released today (September 1), titled North American Hydrogen Market – Overview, Demand, Policies, Deals and Key Players, that projects that at least 85% of the produced low-carbon hydrogen to be blue hydrogen.

“Blue hydrogen production in North America is some of the cheapest in the world due to low natural gas prices and an abundance of suitable sites for geological carbon storage,” said Miles Weinstein, Energy Transition Analyst at GlobalData.

“Still, the cost of blue hydrogen production is in the US is $1.52/kg, compared to $1/kg for grey hydrogen. While Canadian costs are comparable, Canada leads the US in blue hydrogen due mainly to existing natural gas extraction and carbon sequestration infrastructure, as well as funding for low carbon vehicles and fuels.

“In most other global regions, however, the capacity of green hydrogen plants far outpaces that of blue due to higher natural gas prices or, in some cases, cheap renewable electricity.”

“While blue hydrogen is more expensive to produce than grey, US tax credits for carbon capture and storage effectively reduce the cost of blue hydrogen to $1.26/kg, reaching $1.11/kg by 2026. A similar tax credit is currently under consideration in Canada.”

Read more here.

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