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Revisiting hydrogen #659

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@Redmonkeycloud

Update 15/7/2026:
NPI

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1p5C
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Update 6/7/2026:

OLD 1p5C:
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New1p5C:
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Relevant branches: NewHydrogen (OPEN-PROM), newhydrogen (mrprom)
The hydrogen price is very low, resulting in large uptake in uncalibrated sectors (e.g., PA). This is not a direct issue of the transport module; rather, it stems from the hydrogen assumptions (Implicit learning curves, efficiencies, wrong fuel attributions, underestimation of consumption per unit of hydrogen, etc.).

Required changes:

  • Verify all capex costs, check the implicit cost reduction assumptions, check with PRIMES
  • Revisit all processes for hydrogen, identify all inputs of the processes (energy and feedstock inputs). Properly differentiate between feedstock (transformation input) and energy use (own energy use variable)
  • Verify that the avg cost of production is not diminishing. Handle the historical hydrogen prices based on the historical avg cost and some arbitrary chosen markup that needs to be decided.
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Link to Figure

Link to latest PRIMES file

References used in PRIMES

  • Aramco/CONCAWE (2024), E-Fuels: A techno-economic assessment of European domestic production and imports towards 2050
  • Blandford J. (2022), Modeling Hydrogen in U.S. Energy Systems US-REGEN Approach Transport
  • Clean Air Task Force (2023), Clean Air Task Force, Solid Oxide Electrolysis: A Technology Status Assessment
  • DEA (2024), Technology Data for Renewable Fuels. Danish Energy Agency
  • DNV (2020), Study on the Import of Liquid Renewable Energy: Technology Cost Assessment
  • Gorre et al.(2019), Production costs for synthetic methane in 2030 and 2050 of an optimized Power-to-Gas plant with intermediate hydrogen storage
  • EIA (2020), Capital Cost and Performance Characteristic Estimates for Utility Scale Electric Power Generating Technologies
  • IEA (2023), Global Hydrogen Review
  • IEA (2021), World Energy Model Documentation
  • IRENA (2021), Renewable Power Generation Costs in 2021
  • Lazard (2023), Levelized Cost of Hydrogen V.3.0
  • Platts (2023), Platts Methodology and Specifications Guide: Global Hydrogen & Ammonia
  • Pimm, A.J., Cockerill, T.T., & Gale, W.F. (2021), Energy system requirements of fossil-free steelmaking using hydrogen direct reduction. Journal of Cleaner Production. DOI: 10.1016/J.JCLEPRO.2021.127665
  • Roland Berger (2020), The future of steelmaking – How the European steel industry can achieve carbon neutrality. Access: https://www.rolandberger.com/publications/publication_pdf/rroland_berger_future_of_steelmaking.pdf
  • Ueckerdt, F., Bauer, C., Dirnaichner, A. et al (2021), Potential and risks of hydrogen-based e-fuels in climate change mitigation. Nat. Clim. Chang. 11, 384–393, DOI: 10.1038/s41558-021-01032-7

References for coal gasification:

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