Updated May 14, 2026 · Green & Sustainable Finance · Educational use only ·

Green Hydrogen Calculator

Green hydrogen economics.

Calculate green hydrogen cost per kilogram from electricity rate, electrolyser efficiency, and capacity factor — see the price below or above grey hydrogen.

What this tool does

Cost per kilogram of green hydrogen depends on electricity rate, electrolyser efficiency, annual demand, system cost amortised, and system life. Given each input, this calculator returns the per-kilogram production cost — useful for benchmarking against grey or blue hydrogen alternatives. The result reflects the combined impact of electricity expenses and capital cost recovery spread across annual output. Electricity rate and system efficiency exert the largest influence on final cost. A typical scenario involves evaluating whether a given production setup can compete with existing hydrogen sources at current market prices. The calculator assumes consistent annual demand and doesn't account for maintenance, storage, transport, or regulatory costs. Results are for educational comparison only.

Enter Values

Currency($)

Electricity Rate per kWh($)

Electrolyser Efficiency

Annual Demand (kg H2)

System Cost($)

System Life(years)

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Formula Used

C_{k g} = \frac{E _{r a t e} \times 50/ η \times D + S / Y}{D}

E_{r a t e}

Electricity/kWh (entered as a percentage value)

η

Efficiency

D

Demand

S

System cost

Y

Years

Spotted something off?

Calculations or display — let us know.

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. 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. Adjusting one input at a time toward extreme values shows which ones move the result most.

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.

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 Result6.71

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.

References

IEA - Green Hydrogen Report

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).

Why does electricity rate have such a large impact on the calculated cost?

Producing 1 kg of green hydrogen requires roughly 50-55 kWh of electricity, so even small changes in the electricity rate multiply across the entire annual output volume. At typical electrolyser efficiencies, electricity alone can account for 60-80% of the total per-kilogram cost. This is why access to low-cost renewable power is often cited as the primary enabler of competitive green hydrogen production.

What costs are not included in this calculator?

The calculator covers electricity consumption and amortised system capital only. Costs such as maintenance, water supply, compression, storage, transportation, insurance, and regulatory compliance are excluded. In real projects these additional items can add a meaningful premium above the figure shown, so results here represent a floor estimate rather than a full project cost.

How does electrolyser efficiency affect the result?

Efficiency is expressed as a decimal fraction (e.g. 0.70 for 70%) and directly determines how many kWh are consumed per kilogram of hydrogen produced, using the relationship kWh/kg = 50 divided by efficiency. A lower efficiency means more electricity is consumed for the same output, raising the per-kilogram cost proportionally. Current commercial electrolysers typically operate between 60% and 80% efficiency, with higher-end systems approaching 80% under optimal conditions.

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