Norwegian Nel Hydrogen pledges to cut green hydrogen price to €1.80/kg

Norwegian company Nel Hydrogen claims to have found a way to significantly reduce internal energy loss in electrolysers, which could drastically lower the cost of green hydrogen. If the technology performs as promised, the price of green hydrogen could fall to €1.80/kg. This would open the door to hydrogen energy in achieving climate goals.

Norwegian hydrogen technology company Nel Hydrogen announced a breakthrough that could make green hydrogen production significantly more efficient and cheaper than before. The company claims to have found a way to substantially reduce internal energy loss in electrolysers, resulting in a price drop to around €1.80/kg.

What is the technical innovation?

In hydrogen production via electrolysis, a large portion of input energy has been lost as heat and other process-internal losses. According to Nel Hydrogen, the company managed to make what appears at first glance a modest modification inside the device, which led to a significant efficiency gain. The company is not currently disclosing detailed technical specifics.

Why is price so important?

The competitiveness of green hydrogen has so far been hampered by high production costs, with prices often several times higher than those of so-called grey hydrogen derived from fossil fuels. If Nel Hydrogen's figures hold up and the price can approach €1.80/kg, green hydrogen would become significantly more attractive as an alternative for both industry and the energy sector.

Achieving this price level would represent a major step towards meeting the EU's climate goals, since hydrogen is one of the key technologies in reducing CO2 emissions from heavy industry and transport.

Sector potential and sceptics

Hydrogen energy has received significant attention in recent years, with billions of euros invested in it both in Europe and elsewhere in the world. However, the sector has also repeatedly disappointed, with promised breakthroughs often failing to materialise in commercial use or proving more distant than expected.

Nel Hydrogen is one of the world's largest electrolyser manufacturers, and the company's announcement carries significant weight in the sector. Nevertheless, it is customary among experts to await independent verification and proof of large-scale production before writing enthusiasm in.