Renewable hydrogen produced using 100% renewable electricity for water electrolysis is an energy source with near-zero greenhouse gas emissions 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 capital cost.
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 rate, the price of water and taxes.
The cost of hydrogen production is the largest contributor to the price of hydrogen at the pump. This is due to the 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 December 2023, the average price of hydrogen in Germany was €15.25/Kg, closing the year with a clear upward trend, having increased by more than 25% during 2023.
Green hydrogen from Germany, cheaper than imports by ship.
Domestically produced green hydrogen is cheaper than imports by ship. The fall in green electricity prices, the cheaper electrolysers and a lower demand than expected a few years ago mean that the price of green hydrogen from Germany is expected to drop to between 7 and 13 cents per kilowatt hour in 2030. This is the result of a new meta-analysis of numerous studies on the subject carried out by the Wuppertal Institute.
October 4, 2023
Hydrogen filling station operator H2 Mobility Deutschland introduced a dynamic pricing model on October 1. However, the dynamic component is not intended to allow variable prices throughout the day, as in the case of gasoline and diesel, but rather refers to the source of hydrogen.
Since October 1, refueling hydrogen at 700 bars costs eleven euros per kilogram at the first stations where green hydrogen is supplied. The price at large service stations, where there are currently no renewable hydrogen supply contracts, remains unchanged at 13.85 euros/kg. According to the operator, "the pricing model aims to compensate for the increase in the costs of acquisition, supply and operation of the stations." At stations where it is not possible to offset these costs, H2 Mobility will increase the price of refueling at 700 bar by ten percent and that of refueling at 350 bar by seven percent.