Why Hydrogen Isn't Cutting Costs Like Solar or Batteries - CleanTechnica

The article from CleanTechnica explains why hydrogen is not achieving cost reductions comparable to solar panels or batteries, despite long-standing claims by hydrogen advocates. A key finding highlighted is that electrification reduces emissions about 80% more effectively than hydrogen across various use cases, and hydrogen’s overall climate benefits are marginal once losses and logistics are considered. The persistent argument that hydrogen will soon become cheap is challenged by a detailed cost analysis using the Levelized Cost of Hydrogen (LCOH) framework, which accounts for production, delivery, capital, operational costs, and electricity. Electricity costs alone constitute 60–70% of hydrogen’s total cost, with capital equipment and installation adding another 15–25%, while compression, transport, and storage make up the remainder. This cost structure means that even significant improvements in electrolyzer technology cannot drastically reduce hydrogen costs unless electricity becomes nearly free, which is unlikely. The article further discusses the operational dilemma of electrolyzers: running them only when electricity is cheap leads to low utilization