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The Two Major Obstacles To A Hydrogen Revolution — Alan Mammoser

Summary:
Whatever the final outcome may be, industry watchers now largely agree that there are two realms where costs must come down for carbon-free hydrogen to advance. The cost of renewable energy, already the object of remarkable reductions in the past decade, must continue to fall. And the cost of water electrolysis for hydrogen production, encompassing the basic hardware of green hydrogen, the electrolyser, must follow a similar path downward. Many see both poised to happen. In fact, the two are integrally related, with operating expense and capital cost factoring into the total cost of electrolyser operation. The decline of renewable power prices is expected to continue, with accelerated deployment of renewables into grids. But capital costs must come down as well, with electrolysis

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Whatever the final outcome may be, industry watchers now largely agree that there are two realms where costs must come down for carbon-free hydrogen to advance. The cost of renewable energy, already the object of remarkable reductions in the past decade, must continue to fall. And the cost of water electrolysis for hydrogen production, encompassing the basic hardware of green hydrogen, the electrolyser, must follow a similar path downward.

Many see both poised to happen. In fact, the two are integrally related, with operating expense and capital cost factoring into the total cost of electrolyser operation. The decline of renewable power prices is expected to continue, with accelerated deployment of renewables into grids. But capital costs must come down as well, with electrolysis equipment being manufactured more quickly and less expensively.

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The Two Major Obstacles To A Hydrogen Revolution
Alan Mammoser

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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