Green Hydrogen Price Trend and Forecast

Green Hydrogen Regional Price Overview

Get the latest insights on price movement and trend analysis of Green Hydrogen in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Green Hydrogen Price Trend for the First Half of 2025

During the first half of 2025, the green hydrogen market experienced fluctuating pricing trends driven by a combination of economic and policy factors in the United States. Market pressure persisted due to elevated production costs linked to the continued reliance on renewable energy sources. While the government’s support through the 45V tax credit provided some relief to developers, high production expenses remained a key challenge to commercial viability.
 

Green Hydrogen Price Graph

Please Login or Subscribe to Access the Green Hydrogen Price Chart Data
 

Optimism surrounding federal tax incentives helped improve sentiment, yet these measures were insufficient to fully offset operational costs. As a result, several projects were delayed or revised as developers struggled to secure long-term contracts and adequate funding.

Globally, the green hydrogen market showed uneven progress, with some countries benefiting from favorable production conditions, while others faced setbacks due to logistical limitations, feedstock availability, and underdeveloped markets.

The U.S. maintained a strong position in the industry, although regulatory hurdles and unstable feedstock prices continued to impede broader adoption. Despite these short-term challenges, long-term prospects for green hydrogen remained promising, driven by rising global demand for low-carbon energy solutions and growing investments in related infrastructure.

Analyst Insight

According to Procurement Resource, in the near term, green hydrogen prices will be firm on account of tight supply. Greater regulatory clarity will contribute to improving cost structures over time as more projects proceed.
 

Green Hydrogen Price Trend for Q4 of 2024

Stay updated with the latest Green Hydrogen prices, historical data, and tailored regional analysis
 

During the fourth quarter of 2024, the U.S. green hydrogen industry faced notable setbacks, as production costs remained significantly high, limiting progress despite substantial government support. Initial expectations positioning green hydrogen as a clean alternative for sectors like steel, shipping, and residential heating clashed with economic realities.

The electrolysis process, which relies on renewable electricity to split water molecules, proved more expensive than anticipated. Consequently, several projects were cancelled as developers struggled to make production economically feasible. Although policies such as the Inflation Reduction Act provided incentives, the lack of consistent customer demand further impeded market growth.

Demand from industrial and water treatment sectors remained steady, but unmet expectations led to additional project cancellations. The supply chain also experienced strain, with rising energy prices affecting project viability. Large-scale hydrogen plant developments were paused due to regulatory uncertainties and the absence of formal, long-term offtake agreements.

Despite continued interest from energy firms and government bodies, the U.S. industry’s difficulty in scaling production was evident in reduced employment opportunities and slower overall progress. Green hydrogen prices reached 5372 USD/MT in December across U.S. markets.

Analyst Insight

According to Procurement Resource, looking forward, the green hydrogen prices are expected to stabilise as projects adjust to economic realities. However, the sector can continue to face challenges in attracting the investment needed to scale up production and meet demand.
 

Green Hydrogen Price Trend for Q3 of 2024

The market of green hydrogen in the third quarter of 2024 showed a slight decline in prices. This trend was a step closer to its price parity with conventional hydrogen sources. The commodity is used in various sectors as renewable sources of energy help the countries move closer towards their decarbonization goals.

In India, due to a push towards renewable sources of energy through government policies, green hydrogen showed more competitive pricing in comparison to other forms of hydrogen such as grey hydrogen (prepared using natural gas). Policies and incentive schemes like direct production incentives benefitted producers and created a positive ecosystem for the green hydrogen market.

In the global scenario, the manufacturing costs of green hydrogen decreased primarily due to technological advancement and government subsidies; however, it is still higher than grey and brown hydrogen. Overall, the prices have shown a very minimal reduction during the quarter.

Analyst Insight

According to Procurement Resource, the prices of Green Hydrogen are expected to maintain the same trend in the upcoming quarter influenced by the environmental laws. However, due different decarbonisation goals and subsidies provided accordingly by local governments, the prices of green hydrogen will likely show regional variations.

Procurement Resource provides latest prices of Green Hydrogen. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.