Green Hydrogen Calculator
Green hydrogen economics.
Calculate green hydrogen cost per kg based on electricity and system economics. Enter electricity rate per kwh and see the result instantly.
What this tool does
This tool calculates cost per kg of green hydrogen given electricity rate, electrolyser efficiency, demand, system cost, and years.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Green hydrogen - produced by electrolysing water with renewable electricity - costs 4-8/kg in 2026, falling toward 2-3/kg by 2030 as electrolyser costs decline. This calculator shows per-kg cost based on electricity rate and system efficiency.
0.08/kWh electricity at 70% electrolyser efficiency (71 kWh/kg H2) = 5.71/kg electricity. Plus 50,000 system over 10 years producing 5,000 kg H2/year adds 1/kg amortisation. Total 6.71/kg.
Use the tool for industrial or off-grid hydrogen planning. Hydrogen competes with diesel (~6/kg equivalent) and grey hydrogen (~1-2/kg fossil-based). Competitiveness improves with cheap renewables and high utilisation.
Run it with sensible defaults
Using electricity rate per kwh of 0.08, electrolyser efficiency of 70%, annual demand of 5,000, system cost of 50,000, the calculation works out to 6.71. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Electricity Rate per kWh, Electrolyser Efficiency, Annual Demand (kg H2), System Cost, and System Life — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
How the math works
kWh per kg = 50 / efficiency. Annual kWh = demand × kWh/kg. Electricity cost = kWh × rate. System amortised = cost / years. Per kg = (electricity + system) / demand. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".
Running the sensitivity
Energy prices, usage patterns, and grant availability all move the payback figure. Test at least two scenarios — current rates and a rate 20% higher — to see whether the decision holds up across plausible futures.
What this doesn't capture
Carbon reduction, health benefits, and local air quality have real value the financial figure doesn't price. The calculation gives the money side honestly; for the full picture, note the non-financial benefits alongside.
0.08 £/kWh × 50/(70%) = $6.71/kg.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
kWh per kg = 50 / efficiency. Annual kWh = demand × kWh/kg. Electricity cost = kWh × rate. System amortised = cost / years. Per kg = (electricity + system) / demand.
References
Frequently Asked Questions
Is green hydrogen viable?
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