Eire might produce the most affordable inexperienced hydrogen in Europe by 2030, attaining a levelised price of EUR 3.50 (USD 3.73) per kg underneath optimum situations, Aurora Vitality Analysis mentioned on Tuesday.
This is able to be 8% beneath optimum manufacturing prices in Spain and 35% beneath these in Germany, with Eire’s price benefit pushed by the nation’s excessive wind speeds and rising grid congestion.
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Within the analysis agency’s modeling, Eire’s optimum situations seek advice from a 100-MW electrolyser linked to 150 MW of onshore wind and 20 MW of photo voltaic photovoltaic era, not linked to the all-island electrical energy system and situated in Connacht within the western a part of the nation.
Aurora additionally sees potential for exports because it estimates the optimum levelised price of inexperienced hydrogen shipments from Cork to Germany in 2030 to be 13% decrease than Germany’s optimum home manufacturing prices.
As well as, Eire has the ambition to put in 2 GW of offshore wind linked to electrolysers by 2030, implying a inexperienced hydrogen manufacturing of as much as 138 kt a yr, properly above its hydrogen demand, which is projected to achieve 33 kt that yr.
Aurora nevertheless says that the market might fail to develop with out motion to scale back the premium to gasoline costs. It estimates that the optimum inexperienced hydrogen price in Eire in 2030 is equal to EUR 89 per MWh(th), which is 82% greater than its forecast gasoline value.
“Ireland has the potential to become a green hydrogen powerhouse: its abundance of high wind speeds presents a key competitive advantage, but significant financial support will be critical to kickstarting the industry, either by bringing hydrogen costs in line with natural gas prices, or by paying the cost difference to consumers directly,” mentioned Marlon Dey, head of Analysis, UK and Eire, at Aurora Vitality Analysis.
(EUR 1 = USD 1.065)
