In its report, Rystad points out that one of the most promising elements of natural hydrogen – also called white or gold hydrogen – is its cost advantage over other forms of hydrogen due to its natural occurrence.
Grey hydrogen, produced from fossil fuels, costs less than $2 per kilogram of hydrogen on average, while green hydrogen, produced using renewable electricity, is currently more than three times pricier. The cost of renewable hydrogen is expected to come down as electrolyzer pricing falls in the coming years, and yet, white hydrogen is still expected to be cheaper.
At present, Canada-based producer Hydroma extracts white hydrogen at an estimated cost of $0.5 per kg. Depending on the deposit’s depth and purity, projects in Spain and Australia aim for a cost of about $1 per kg, solidifying white hydrogen’s price competitiveness.
In addition to the cost advantage, white hydrogen can also have a low carbon…
