IEA expects African green hydrogen to costs $2/kg by 2030

According to the International Energy Agency, hydrogen generated from renewable energy in southern Africa might cost just under $2/kg by then, while equal output in northern Africa could cost just above that.

According to the International Energy Agency, hydrogen generated in northern Africa from natural gas with carbon capture and storage might still be cheaper by 2030, at slightly over $1/kg.

However, in some areas, hydrogen generation from renewables might cost less than $1.5 per kilogram. Sections of South Africa, Namibia, and Botswana, among others, have the ability to produce at a cheap cost, whereas parts of Egypt, Libya, Sudan, and Chad, among others, have the capacity to produce at a low cost.

The IEA stated that significant cost reductions in renewable hydrogen generation will need “strong legislative support and timely infrastructure investment.”

Delivered prices as liquid hydrogen to northern Europe may be slightly over $4/kg by 2030, but closer to $3.50/kg if ammonia is employed as a carrier, according to the report. This would be somewhat more expensive than the expected delivery costs from the Middle East, which are about around $4/kg for liquid hydrogen and under $3/kg for ammonia. However, based on IEA calculations, it would be less expensive than exports from Australia, especially liquid hydrogen.