Hydrogen is widely seen as a key solution for decarbonising energy systems, industry and transport. However, one of the most common questions is whether hydrogen—especially renewable (green) hydrogen—is currently affordable.
Why Hydrogen Is Still Expensive Today
At present, green hydrogen is generally more expensive than fossil fuels and other conventional energy sources. This is mainly due to several factors.
First, hydrogen production via electrolysis requires significant amounts of electricity. When this electricity comes from renewable sources, such as wind or solar, the cost of production is directly influenced by renewable energy prices.
Second, the technology itself—particularly electrolysers—is still developing. While costs have already decreased over time, equipment and installation remain relatively expensive compared to mature fossil-based systems.
Another important factor is infrastructure. Hydrogen requires dedicated systems for storage, transport and distribution, many of which are still in early stages of deployment. This adds additional costs across the value chain.
Finally, hydrogen production is not yet fully industrialised. The current scale of production is still limited, meaning that the sector has not yet benefited from economies of scale that typically reduce costs over time.
Why Costs Are Expected to Decrease
Despite these challenges, the cost outlook for hydrogen is improving rapidly.
As more hydrogen projects are developed across Europe and globally, production capacity is increasing. This leads to larger-scale operations, improved efficiency and lower unit costs.
Technological progress is also playing a key role. Advances in electrolyser design, manufacturing and system integration are helping reduce both capital and operational costs.
In addition, public support is accelerating market development. The European Union and national governments are investing in hydrogen through funding programmes, regulatory frameworks and infrastructure development, which help reduce investment risks and stimulate demand.
The Role of Projects Like EASTGATEH2V
Projects such as EASTGATEH2V are essential for bringing hydrogen closer to cost competitiveness.
By developing a Hydrogen Valley in the Košice region, the project integrates hydrogen production, infrastructure and real-world applications into one system. This allows technologies to be tested under real conditions, improves efficiency and supports the scaling up of hydrogen solutions.
Such initiatives help bridge the gap between research and large-scale deployment, contributing to the gradual reduction of hydrogen costs.
A Transition in Progress
While hydrogen is not yet the cheapest energy option, it is becoming increasingly competitive. As technology advances, production scales up and infrastructure expands, green hydrogen is expected to play a growing role in a clean and sustainable energy system.
Affordability, therefore, is not a fixed state, but part of an ongoing transition—one that hydrogen is steadily moving through.