China projected to lead in low-cost green hydrogen production

A short analysis by the Energy Institute at the University of Cologne (EWI) indicates that China is positioned to produce green hydrogen at the lowest global costs, projected at an average of 120 USD per megawatt-hour. This gives China a significant cost advantage over other major economies.

Germany ranks second with projected costs of 175 USD per megawatt-hour, relying on a combination of domestic production and imports from North Africa and other EU nations. The United States could meet its own demand but at a higher cost of 225 USD per megawatt-hour.

Japan faces the highest challenges due to its geography as an island nation without pipeline connections. While domestic production is possible, it is not competitive against Chinese imports. Experts estimate that without Chinese shipments, Japan's import costs could exceed 300 USD per megawatt-hour. The EWI attributes China's advantage to favorable wind and solar locations, lower investment costs for renewable facilities and electrolyzers, and reduced labor and financing costs.