How Much Does a Gallon of Hydrogen Fuel Cost?

When it comes to fuel, cost is always front of mind. Whether being used to power a recreational vehicle or provide energy to a manufacturing plant, price will almost always play a role in the decision making process. Unlike conventional fuels, hydrogen is measured in kilograms as opposed to litres or gallons. When being used to generate power for homes, buildings and industrial applications, hydrogen is measured in kilowatt-hours (kW).

In the UK, hydrogen fuel generally costs motorists between £10 and £15 per kilogram. In the USA, hydrogen costs around US$16 per kilogram. Currently, renewable hydrogen produced via electrolysis costs between US$3 – US$6/kg, though analysts expect this figure to drop significantly over the next decade.

Bringing down the cost of hydrogen fuel

With hydrogen fuel set to play an important role in reducing greenhouse gas emissions and tackling climate change, an increasing number of governments are investing in technology and infrastructure designed to reduce the cost of hydrogen fuel. In the UK, British based renewables company Source Energie and electrolysis pioneer ERM Dolphyn are finalising plans to convert a Celtic Sea wind farm into a green hydrogen production site. By 2040, project managers expect the project will produce hydrogen at a cost of around £1.50/kg.

“We’re in the best position in Europe, having the best wind resources by far,” says project director Kevin Kinsella. “We have a leading offshore oil and gas industry and offshore wind industry, supported by the best supply chain in Europe, and all of the technical resources and knowhow to deliver it. With Net Zero by 2050 written into UK law, this is a fantastic opportunity for the oil and gas industry to transition smoothly from fossil fuels to green energy, using the same skills and resources, and at the same time become a net exporter of green energy to Europe.”

National Grid embraces eco-friendly hydrogen

Cambridge-based climate technology company Levidian is also exploring more affordable and eco-friendly ways to produce hydrogen. Currently used by the National Grid, the game changing Loop device uses plasma technology to split methane into hydrogen and graphene-locked carbon, without the need for heat or catalysts.

“Loop hydrogen has a typical levelized cost of hydrogen of around £2.27/kg, based on a large-scale Loop installation and using the UK Department for Business, Energy and Industrial Strategy’s assumptions for calculation,” says Levidian CEO, John Hartley.

Want to know more about hydrogen as a fuel source? From slashing global carbon emissions and combating climate change to helping countries reduce dependency on foreign imports and work towards energy independence, we cover a range of up-to-the-minute topics in ‘Everything You Need to Know About Hydrogen Fuel’.