Hydrogen is increasingly seen as an important piece of the decarbonisation puzzle in meeting Paris Agreement climate goals. Now, a PwC Germany Hydrogen calculator is shedding light on the longer-term costs and efficiencies associated with hydrogen.
The hydrogen economy is a growth area, with organisations keen to capitalise on the net-zero vision and become market leaders across the hydrogen value chain. Green hydrogen—that is, hydrogen produced by renewable sources—holds the greatest promise in meeting the planet’s future energy needs. However, the underlying costs and availability of renewable energy are challenging. Organisations early in their hydrogen transition need to weigh the commercial attractiveness of green, blue (produced from natural gas and supported by carbon capture and storage) and grey (from gas, but without carbon capture) hydrogen—and in comparison to their status quo.
Focus on green hydrogen
Recent PwC analysis shows that demand for green hydrogen will grow at a moderate, steady pace until 2030, after which it is expected to accelerate beyond niche applications. By 2050, hydrogen demand could reach 500 million metric tonnes per year, depending on the global climate agenda and the progression of sector-specific activities, energy-efficiency measures, direct electrification and how carbon capture technology is implemented.
Measuring the economics of a hydrogen energy transition
The time is now to start conversations about potential hydrogen transition projects. The PwC Germany Hydrogen CalculatorOpens in a new window* is designed to quantify the issue. Easy to use, it covers a thorough list of all major hydrogen applications in transport, energy, real estate and industry, combining a few simple data entries with comprehensive consumption, efficiency and cost data to generate a tailored picture of the economic efficiency of your organisation.
*The hydrogen calculator featured in this article was developed by PwC Germany. Please note the following terms of use before using the tool.
Stakeholders can use the results—including a calculation of the ‘break-even’ point of green hydrogen compared to other technologies—to fuel internal conversations and further analysis. It also identifies the point in time when hydrogen becomes cost competitive for a particular application. By visualising the break-even and cost-competitive returns, the calculations aim to support a decision on ‘Does it make commercial sense for us to look further into hydrogen?’ as a starting point.
The future of green hydrogen
Organisations that bet on green hydrogen development today can be the market leaders of tomorrow, ready to capitalise as the hydrogen transition reaches full speed. But the decision to invest in hydrogen projects requires careful analysis of the sector-specific applications, production and storage, as well as auxiliary activities such as carbon capture and improving energy efficiency.
Use the full PwC Hydrogen Calculator
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