FinToolSuite

Green Hydrogen Calculator

Updated April 17, 2026 · Green & Sustainable Finance · Educational use only ·

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
Electricity/kWh
Efficiency
Demand
System cost
Years

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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.

Example Scenario

0.08 £/kWh × 50/(70%) = $6.71/kg.

Inputs

Electricity Rate per kWh:0.08 £
Electrolyser Efficiency:70
Annual Demand (kg H2):5,000
System Cost:50,000 £
System Life:10 years
Expected Result$6.71

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.

Frequently Asked Questions

Is green hydrogen viable?
Depends on use case. Competitive with diesel in heavy transport and industrial heat. Expensive vs grey hydrogen for chemicals. Viable with cheap renewable power (0.03-0.05/kWh).

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