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The Race to $1.00 per Kilogram Hydrogen: U.S. and Australia Leading the Way

The global push for clean and sustainable energy sources has put hydrogen in the spotlight as a potential game-changer. With its ability to produce zero-emissions energy and serve as a versatile fuel, hydrogen has garnered significant attention from governments, industries, and researchers worldwide. One of the key goals in the hydrogen sector is to achieve a cost of $1.00 per kilogram (Kg) of hydrogen, making it competitive with conventional fuels. Let’s explore how the United States and Australia are leading the race towards this ambitious target.


The US Department of Energy (DOE) has set an ambitious goal of reducing the cost of green hydrogen to $1.00 per Kg, where it can compete with the lowest-cost gray hydrogen. To achieve this, the DOE has allocated $750 million in funding from the 2021 Bipartisan Infrastructure Law. This funding will support 52 different projects aimed at scaling up volume, improving automation and quality control, and reducing supply chain risks in electrolyzer and fuel cell systems. The program also focuses on key electrolyzer components, such as catalysts and membranes, along with innovative materials and system designs.


Australia, with its abundant renewable resources, is well-positioned to become a major player in the hydrogen economy. A recent study conducted in Queensland, Australia, demonstrated that proton exchange membrane (PEM) electrolyzers powered by wind and solar resources could produce hydrogen at AU$3.00 per Kg (approximately US$2.00). This study highlights the potential for Australia to achieve the $1.00 per Kg target through proper sizing, scale-up, and utilization of renewable energy sources.


The efforts of both the United States and Australia in driving down the cost of hydrogen production have significant implications for the global energy transition. Clean hydrogen has the potential to decarbonize various sectors, including heavy-duty transportation, industrial processes, and power generation. By achieving the $1.00 per Kg milestone, hydrogen can become a cost-competitive and sustainable alternative to conventional fuels, accelerating the adoption of hydrogen technologies worldwide.


The race for $1.00 per Kg hydrogen is gaining momentum, with the United States and Australia at the forefront of research, development, and investment. Their commitment to driving down costs, improving efficiency, and leveraging renewable resources brings us closer to a future powered by clean and sustainable hydrogen. As these countries continue to make advancements, the global hydrogen economy stands to benefit, paving the way for a greener and more sustainable future.

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