The Energy Mix

Top Menu

  • About
  • Latest Digest/Archive
  • Partners
  • Which Energy Mix is this?
  • Contact

Main Menu

  • News Archive by Category
    • Climate & Society
      • Carbon Levels & Measurement
      • Carbon-Free Transition
      • Climate Action/”Blockadia”
      • Climate Denial & Greenwashing
      • Climate Policy/Meetings/Negotiations
      • Culture, Curiosities, & Humour
      • Demographics
      • Energy Politics
      • Energy Subsidies
      • Energy/Carbon Pricing & Economics
      • Finance & Investment
      • First Peoples
      • Insurance & Liability
      • International Agencies & Studies
      • Jobs & Training
      • Legal & Regulatory
      • Media, Messaging, & Public Opinion
      • Methane
      • Travel, Leisure & Recreation
    • Climate Impacts & Adaptation
      • Biodiversity & Habitat
      • Drought, Famine & Wildfires
      • Food Security
      • Forests & Deforestation
      • Health & Safety
      • Heat & Temperature
      • Human Rights & Migration
      • Ice Loss & Sea Level Rise
      • International Security & War
      • Severe Storms & Flooding
      • Soil & Natural Sequestration
      • Water
    • Demand & Distribution
      • Air & Marine
      • Auto & Alternative Vehicles
      • Batteries/Storage
      • Buildings
      • Cities
      • Electricity Grid
      • Energy Access & Equity
      • Off-Grid
      • Petrochemicals & Plastics
      • Supply Chains & Consumption
      • Transit
      • Walking & Biking
    • Jurisdictions
      • Africa
      • Arctic & Antarctica
      • Asia
      • Australia
      • Brazil
      • Canada
      • China
      • Europe
      • India
      • International
      • Mexico, Caribbean & Latin America
      • Middle East
      • Oceans
      • Small Island States
      • South & Central America
      • Sub-National Governments
      • United States
    • Non-Renewable Energy
      • CCS & Negative Emissions
      • Coal
      • Nuclear
      • Oil & Gas
      • Pipelines/Rail Transport
      • Shale & Fracking
      • Tar Sands/Oil Sands
    • Opinion & Analysis
    • Renewable Energy
      • Bioenergy
      • Demand & Efficiency
      • General Renewables
      • Geothermal
      • Hydrogen
      • Hydropower
      • Research & Development
      • Solar
      • Wave & Tidal
      • Wind
  • Special Reports
    • Alberta’s Bitumen Pipe Dream
    • Canada’s Drive to Net Zero
    • Carbon Farming
    • City and Sub-National Action
    • Drawdown
    • Drive to 1.5
    • 26-Week Climate Transition Program for Canada
    • America’s Electoral Climate 2020
    • Canada’s Climate Change Election 2019
    • The Energy Mix Yearbook 2018
      • Climate Extremes
      • Fossils Go For Broke
      • Renewables (R)Evolution
      • Electric Vehicles
      • Canada’s Contradiction
      • COP24
      • Pipeline Politics
      • Jobs and Just Transition
      • Cities and Sub-Nationals
      • Finance and Divestment
      • Climate Litigation
  • Webinars & Podcasts
  • About
  • Latest Digest/Archive
  • Partners
  • Which Energy Mix is this?
  • Contact
  • Subscribe
  • Donate

logo

  • News Archive by Category
    • Climate & Society
      • Carbon Levels & Measurement
      • Carbon-Free Transition
      • Climate Action/”Blockadia”
      • Climate Denial & Greenwashing
      • Climate Policy/Meetings/Negotiations
      • Culture, Curiosities, & Humour
      • Demographics
      • Energy Politics
      • Energy Subsidies
      • Energy/Carbon Pricing & Economics
      • Finance & Investment
      • First Peoples
      • Insurance & Liability
      • International Agencies & Studies
      • Jobs & Training
      • Legal & Regulatory
      • Media, Messaging, & Public Opinion
      • Methane
      • Travel, Leisure & Recreation
    • Climate Impacts & Adaptation
      • Biodiversity & Habitat
      • Drought, Famine & Wildfires
      • Food Security
      • Forests & Deforestation
      • Health & Safety
      • Heat & Temperature
      • Human Rights & Migration
      • Ice Loss & Sea Level Rise
      • International Security & War
      • Severe Storms & Flooding
      • Soil & Natural Sequestration
      • Water
    • Demand & Distribution
      • Air & Marine
      • Auto & Alternative Vehicles
      • Batteries/Storage
      • Buildings
      • Cities
      • Electricity Grid
      • Energy Access & Equity
      • Off-Grid
      • Petrochemicals & Plastics
      • Supply Chains & Consumption
      • Transit
      • Walking & Biking
    • Jurisdictions
      • Africa
      • Arctic & Antarctica
      • Asia
      • Australia
      • Brazil
      • Canada
      • China
      • Europe
      • India
      • International
      • Mexico, Caribbean & Latin America
      • Middle East
      • Oceans
      • Small Island States
      • South & Central America
      • Sub-National Governments
      • United States
    • Non-Renewable Energy
      • CCS & Negative Emissions
      • Coal
      • Nuclear
      • Oil & Gas
      • Pipelines/Rail Transport
      • Shale & Fracking
      • Tar Sands/Oil Sands
    • Opinion & Analysis
    • Renewable Energy
      • Bioenergy
      • Demand & Efficiency
      • General Renewables
      • Geothermal
      • Hydrogen
      • Hydropower
      • Research & Development
      • Solar
      • Wave & Tidal
      • Wind
  • Special Reports
    • Alberta’s Bitumen Pipe Dream
    • Canada’s Drive to Net Zero
    • Carbon Farming
    • City and Sub-National Action
    • Drawdown
    • Drive to 1.5
    • 26-Week Climate Transition Program for Canada
    • America’s Electoral Climate 2020
    • Canada’s Climate Change Election 2019
    • The Energy Mix Yearbook 2018
      • Climate Extremes
      • Fossils Go For Broke
      • Renewables (R)Evolution
      • Electric Vehicles
      • Canada’s Contradiction
      • COP24
      • Pipeline Politics
      • Jobs and Just Transition
      • Cities and Sub-Nationals
      • Finance and Divestment
      • Climate Litigation
  • Webinars & Podcasts
Advanced Search
Carbon-Free TransitionClimate & SocietyDemand & DistributionDrive to 1.5Electricity GridEnergy SubsidiesEnergy/Carbon Pricing & EconomicsFinance & InvestmentJurisdictionsRenewable EnergyResearch & DevelopmentUnited StatesWind
Home›Climate & Society›Carbon-Free Transition›Plummeting Wind Costs Could Make ‘Green’ Hydrogen Cost-Competitive by 2023

Plummeting Wind Costs Could Make ‘Green’ Hydrogen Cost-Competitive by 2023

July 29, 2020
July 29, 2020
 
Primary Author Compiled by The Energy Mix staff
233
0
Share:
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  Print This Story
Sue Sapp via Robins Air Force Base

Less than two weeks after a report that renewably-produced “green” hydrogen could be cost competitive with fossil-dependent “grey” by 2030, a new analysis by banking giant Morgan Stanley says plummeting wind energy prices could push green hydrogen into the lead by 2023.

The analysis shows onshore wind costs that already come in as low as US$20 per megawatt-hour dropping to $5 to $7/MWh in the midwestern U.S. and Texas by 2023/24, Recharge reports. That would bring green hydrogen down from $1.53 to $1.00 per kilogram and make it competitive with fossil hydrogen “much sooner than appreciated,” Morgan Stanley said in a note to clients.

Like this story? Subscribe to The Energy Mix and never miss an edition of our free e-digest.

SUBSCRIBE

Hydrogen prices had already made news in mid-July when IHS Markit said the price penalty for green hydrogen was set to fall over the next decade—and that 2020 would be seen as a turning point for the technology. “Costs for producing green hydrogen have fallen 50% since 2015 and could be reduced by an additional 30% by 2025 due to the benefits of increased scale and more standardized manufacturing, among other factors,” said Simon Blakey, the firm’s senior adviser for global gas.

“The Morgan Stanley analysts admit the dramatic fall [in their more recent report] depends on ongoing reductions in the costs of electrolyser technology, and subsidies to support green H2 electrolysis, as well as an extension of the wind power production tax credit to 2024, but said they see both ‘as highly possible’,” Recharge writes.

With those supports in place, “the U.S. offers one of the biggest potential markets for green hydrogen to act as a key driver of the energy transition by displacing fossil fuels,” the article states, citing the Morgan Stanley report. “As elsewhere in the world, grey hydrogen produced via unabated fossils currently dominates the U.S. market with a price of about $0.30/kg that excludes the capital cost needed to bring new capacity online.”

Last week, utility NextEra Energy said its subsidiary, Florida Power & Light, would invest $65 million in a pilot project to build a 20-megawatt electrolyser and produce 100% green hydrogen, Greentech Media reports.

“We’re really excited about hydrogen, in particular when we think about getting not to a net-zero emissions profile but actually to a zero-emissions carbon profile,” NextEra CFO Rebecca Kujawa told investors. “When we looked at this five or 10 years ago and thought about what it would take to get to true zero emissions, we were worried it was extraordinarily expensive for customers.” 

But now, “what makes us really excited about hydrogen—particularly in the 2030 and beyond time frame—is the potential to supplement a significant deployment of renewables [and energy storage]. That last amount of emissions you’d take out of the system to get down to zero could be most economically served by hydrogen.”

Tagsbyline-internalCanada Net Zero - Action PracticeDrive to 1.5Drive to 1.5 Pathways to 1.5Energy Central - Energy Collective
Share:
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  Print This Story

Find more stories about
Carbon-Free TransitionClimate & SocietyDemand & DistributionDrive to 1.5Electricity GridEnergy SubsidiesEnergy/Carbon Pricing & EconomicsFinance & InvestmentJurisdictionsRenewable EnergyResearch & DevelopmentUnited StatesWind

    Leave a reply Cancel reply

    Recent Posts

    • Alberta Calls for $30-Billion Carbon Capture Subsidy in Upcoming Federal Budget
      Alberta Calls for $30-Billion Carbon Capture Subsidy in Upcoming Federal Budget
      March 10, 2021
    • Panicky Messaging on Line 5 Closure Threat Masks Real Issues with Pipeline, Oil by Rail
      Panicky Messaging on Line 5 Closure Threat Masks Real Issues with Pipeline, Oil by Rail
      March 10, 2021
    • Experts Brace for Disaster as Canada, U.S. Increase Oil-by-Rail Shipments
      Experts Brace for Disaster as Canada, U.S. Increase Oil-by-Rail Shipments
      March 10, 2021
    • Quebec LNG Megaproject Will Drive Up Power Rates with $310M Revenue Hit, Analysis Finds
      Quebec LNG Megaproject Will Drive Up Power Rates with $310M Revenue Hit, Analysis Finds
      March 10, 2021
    • Sketchy Carbon Accounting Turns Net-Zero Targets into ‘Weapons-Grade Greenwash’, Scientist Warns
      Sketchy Carbon Accounting Turns Net-Zero Targets into ‘Weapons-Grade Greenwash’, Scientist Warns
      March 10, 2021

    News Feed

    Top News

    • Study Probes Northern Permafrost Loss at 1.5°, 2.0°C Average Warming
      March 9, 2021
    • China Plans Online Carbon Trading Market by Mid-Year
      March 9, 2021

    Read More

    Carbon-Free Transition

    • Electric Motorbikes Fuel Carbon-Free Future for East Africa
      March 9, 2021
    • Volatile Market, Competing Automakers Drive Down Tesla’s Share Price
      March 9, 2021

    Read More

    Canada

    • Yukon Energy Turns to First Nation as Site for Territory’s Biggest Grid Battery
      March 9, 2021
    • Northeastern B.C. First Nation Gets Oilfield Services Training
      March 9, 2021

    Read More

    U.S.

    • Second-Biggest U.S. Coal Mine Heads Toward Closure
      March 9, 2021
    • U.S. Legislator to Target Big Oil for Oversight
      March 9, 2021

    Read More

    International

    • China Plans Online Carbon Trading Market by Mid-Year
      March 9, 2021
    • Pacific Islands Unveil Faster Shift to Renewables
      March 9, 2021

    Read More

    • About the Energy Mix
    • Contact
    • Privacy Policy and Copyright
    Copyright 2020 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.