The Cost Dynamics: Green vs Grey Hydrogen

Grey hydrogen, traditionally cheaper, is made from natural gas and contributes significantly to carbon emissions. Its cost in India ranges from $2.70 to $4 per kilogram, largely due to the country’s dependence on imported natural gas. On the other hand, green hydrogen is produced using renewable energy sources, eliminating carbon emissions. Hygenco has announced that their green hydrogen is now priced lower than grey hydrogen for some long-term contracts, challenging the conventional cost structure.

Basically, a big part but not all, is due to the high cost of natural gas in India, which is largely imported, makes grey hydrogen more expensive. In comparison, the cost of producing green hydrogen has decreased due to advancements in renewable energy technologies and efficiencies in production processes, allowing it to be priced lower than grey hydrogen for some contracts.