More than 100GW of electrolysers will be manufactured each year by the end of this decade, up from 2GW in 2020, in line with growing demand for green H₂, according to a new report by Rethink Energy.

The UK-based analyst says that Western manufacturers have already committed to building factories to produce more than 42GW of electrolysers annually by 2030, providing the crucial economies of scale that will help reduce the price of electrolysers from about $1,400/kW today to $340/kW by 2030.

These lower electrolyser costs, combined with reduced renewable energy prices, will help ensure that the average cost of green hydrogen globally will reach $1.50/kg by 2030, far below the current worldwide low of $4/kg in the US Northwest (according to S&P Global Platts).