Renewable hydrogen produced using 100% renewable electricity for water electrolysis is a near-zero greenhouse gas emission power source that Germany could use in its decarbonization efforts. Renewable hydrogen can be used throughout the economy, including transportation. When used in transport the hydrogen would have to be supplied to a hydrogen refueling station. Hydrogen can be produced at a central facility and transported to the HRS or produced directly on-site at the HRS.

The German Government provides cost estimates for three Hydrogen Station capacities: 400 kg, 1,000 kg and 2,500 kg of hydrogen per day. The cost includes the initial investment in three components: the hydrogen storage tank, the compressor and the dispensers. The annual fixed operating cost is calculated at 4% of the cost of capital.

The price of hydrogen at the pump is the sum of the cost of hydrogen production and the cost of the supply infrastructure. The price of hydrogen at the pump varies by area of the country as a result of variations in hydrogen production parameters, namely the price of renewable electricity, the electricity grid tariff, the price of water, and taxes.

The cost of producing hydrogen is the largest contributing factor to the levelized price of hydrogen at the pump. This is due to high capital investment in both renewable electricity generation and water electrolysis. As both technologies improve, it is estimated that the price of hydrogen at the pump will be 30% cheaper in 2030 and 50% cheaper in 2050 compared to the 2020 level.

In the year 2020, the hydrogen production price was within the range of the study, which is from 3 to 6.5 euros per kg of hydrogen. However, for the year 2050, the estimates of the average cost of renewable hydrogen in the EU in any of the scenarios are lower