Lhyfe, a company involved in green hydrogen production in France, views the lack of demand as a significant barrier to the advancement of this energy source, reported Energy News.
As per media report, the production cost of green hydrogen ranges from 5 to 6 euros per kilogram, which is notably higher than grey hydrogen, which costs between 3 and 5 euros per kilogram.
When transported by truck, the price of green hydrogen can rise to between 10 and 20 euros per kilogram.
This price disparity restricts industries, forcing them to choose between environmental goals and financial limitations.
To address this issue, Matthieu Guesné, CEO of Lhyfe, suggests implementing “remuneration supplements” for consumers until market penetration reaches 10%.
He points to the Netherlands and Great Britain as examples where such measures have been adopted.
These incentive schemes aim to bridge the cost gap between green and grey hydrogen, making green hydrogen more affordable for manufacturers.
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