Grey hydrogen in Russia costs $1/kg – green hydrogen 10 times the price
The cost of producing “grey” hydrogen in Russia, made from fossil fuels without any capture of carbon dioxide, is about $1-2 per kg, the deputy industry and trade minister said.

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    “Yes, we still have to master the technology of CO2 capture,” Mikhail Ivanov said. “But regardless, we are ready today to produce so-called grey hydrogen without capture technology. It costs about $1-2 per kg to produce hydrogen in this way.

     The cost of “green” hydrogen – produced through electrolysis – is about $10, he said.

     Russia’s Energy Ministry is forecasting an explosive rise in world-wide demand for hydrogen after 2030, Deputy Energy Minister Pavel Sorokin said. At the moment, hydrogen has practically no place in the world energy balance, but by 2050 it could account for 7 to 16 %, the ministry says.

    “In general, by 2050, we can assume that the market volume will be about 400-500 million tonnes,” Sorokin said.

    The government is drafting guidelines for the development of hydrogen energy in Russia and is assuming it will be able to count on exports of 200,000 tonnes in 2024. The ministry of industry and trade plans to reach special investment contracts on developing hydrogen technology by the end of 2022.

    “Green” energy is produced through electrolysis – splitting water into hydrogen and oxygen. And the electricity is produced from renewable energy sources.

    “Grey” hydrogen, more widespread as of now, is produced from fossil fuels without CO2 capture. “Blue” hydrogen is also made from fossil fuels, but carried out together with capture of greenhouse gases.


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July 2021