Hydrogen production costs are examined across different European countries based on hourly simulations of power prices under various weather conditions and hydrogen production expansion scenarios until 2050. Operational expenditures (OPEX) were calculated for different electrolyser configurations as stand-alone electrolysers sourcing electricity exclusively from the grid or integrated electrolysers operating in collocated systems with wind and solar power. The analysis distinguishes furtheron between subsidized and unsubsidized renewable energy sources.

Additionally, the electricity price simulations are evaluated for regulatory requirements for green hydrogen production as outlined in the RED II Delegated Act and are also taken for the OPEX calculations into consideration. To provide a comprehensive cost assessment, capital expenditures (CAPEX) for different electrolyser technologies were also analyzed.

Based on a hydrogen demand scenario for various European countries, the gap between hydrogen demand and the available supply of green hydrogen is quantified. To bridge this gap, alternative sources such as grey, blue, and turquoise hydrogen, as well as green ammonia, are considered. Using a cost optimization model, the required volumes and production costs of these alternative technologies are determined.