Meanwhile, Hyundai announced earlier this year that it plans to open two new hydrogen fuel cell plants in South Korea. Japanese manufacturers, including Toyota, Subaru, Kawasaki, and Yamaha recently announced a strategy to collaboratively explore hydrogen use in internal combustion engines, which includes Toyota’s CEO driving a hydrogen-powered race car. It’s also positive news for manufacturers who have continued to develop hydrogen tech for automotive applications. With the future economics looking favorable towards green hydrogen, it could be a way to cut greenhouse emissions from heavy industry while countries look to cut carbon emissions under the EU’s trading system.

According to a report from Reuters, EU climate policy chief Frans Timmermans said he expected the EU and its neighbors to exceed the target of installing electrolyzers capable of 40 GWs. Von der Leyen said green hydrogen, which is obtained by passing renewably-produced electricity through water to split the element from oxygen, could cost less than 1.8 euros ($2.04) per kilogram by 2030 - down from 6 euros ($6.80) per kilo in 2020 and less than last year’s average of 2 euros ($2.27) for grey hydrogen.Īs European nations increase capacity, green hydrogen production costs have been steadily falling as they’re likely to surpass current production targets by 2030.

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