Seven companies, including ACWA Power and Iberdrola, have come together to set up an initiative to scale up production of green hydrogen within the next six years.
Photo: petrmalinak / Shutterstock
The 'Green Hydrogen Catapult' initiative aims to provide 25 gigawatts of green hydrogen by 2026 and halve its current cost to around $2 per kilogram.
Reducing the price of green hydrogen to this level should make it competitive with other fuels.
Producing green hydrogen - which is generated through electrolysis - is currently far more expensive than harvesting it from natural gases.
Read more: Iberdrola and Fertiberia To Invest In Massive Green Hydrogen Project
The initial investment from the seven companies will come to around $110 billion (€82.5 billion), which will be raised through debt and equity providers with the option for some public funding.
Their targets would go a long way in aiding the complete decarbonisation of the world's industries, as several companies in other sectors have begun to move away from traditional forms of fuel and energy.
Paddy Padmanathan, CEO of ACWA said: "Having led the race to deliver photovoltaic energy at well-below $2 cents per kilowatt-hour, we believe collective ingenuity and entrepreneurship can deliver green hydrogen at less than US$2 per kilogram".
"From an industry perspective, we see no technical barriers to achieving this, so it's time to get on with the virtuous cycle of cost reduction through scale-up.”
At the 2020 Global Manufacturing and Industrialisation Summit (GMIS 2020) it was hinted that green hydrogen could go a long way to reshaping global supply chains.
A Capgemini report from October considers it essential in helping the EU reach its climate-neutral targets
Green hydrogen could also be used to power truck fleets, trains, and aircraft.
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