The Hydrogen Stream: U.S. government targets $2/kg by 2026, $1/kg by 2031

The US Department of Energy says it is aiming for “clean” hydrogen production costs of $2/kg by 2026 and $1/kg by 2031.

May 8, 2024 Sergio Matalucci

Image: Fortescue

The US Department of Energy’s Hydrogen and Fuel Cell Technologies Office (HFTO) has published a detailed strategy and planning document that will help guide hydrogen innovation and research in the coming years. It outlines HFTO’s mission, goals, and strategic approach, said the Department of Energy. The document aims for “clean” hydrogen production costs of $2/kg by 2026 and $1/kg by 2031, but also electrolyzer system costa of $250/kW (low-temperature electrolyzers) and $500/kW (high-temperature electrolyzers) by 2026.

Plug Power has agreed to supply up to 3 GW of electrolyzers to Allied Green Ammonia (AGA) for its planned hydrogen-to-ammonia facility in the Northern Territory, Australia. The basic engineering and design package is expected in May, with a final investment decision expected by the fourth quarter of 2025, said Plug Power. It noted that it aims to start delivering 3 GW of electrolyzer from the first quarter of 2027.

The Dutch government said that seven projects are currently underway to produce fully renewable (sustainable) hydrogen, backed by subsidies. The projects will collectively provide 101 MW of electrolysis capacity. The hydrogen will be used by the chemical industry and for refueling stations. The projects set to receive subsidies include H2 Hollandia (Nieuw-Buinen), Hysolar (Nieuwegein), Groengas asset (Amsterdam), Groengas asset (Groningen), RWE Eemshydrogen (Eemshaven), Van Kessel Olie (Oude Tonge), and VoltH2 (Delfzijl). The Dutch government said that 91 MW of the electrolysis capacity will c0me from projects in the province of Groningen, and on average, each of the seven winning projects will receive a €2.5 million ($2.69 million) subsidy per megawatt of electrolysis capacity. The companies have until 2028 to complete the construction of their plants.

H-TEC Systems and Bilfinger have agreed to collaborate to develop large-scale green hydrogen projects in Europe. “Under the agreement, both parties intend to consider working together as preferred partners for suitable projects in which both see mutual value creation through their complementary offering,“ said H-TEC Systems. “This approach will not only allow flexibility regarding project-specific contractual setups but also ensures seamless integration of expertise for optimized project outcomes.”

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