The price of green hydrogen, the most sustainable form of hydrogen, will still be more expensive than natural gas in ten years, ABN AMRO reports Wednesday in a report on green hydrogen.

The difference is shrinking, but green hydrogen will still not be able to compete well with fossil fuels in 2030.

Hydrogen can be an alternative to fossil fuels.

Hydrogen extracted from natural gas or coal is gray.

When the CO2 that is released is captured and stored, it is blue.

If hydrogen is extracted entirely with renewable energy, such as solar or wind energy, it is green.

If green hydrogen is produced on an industrial scale, one kilo will cost 2.19 euros in 2030.

But in order to compete with natural gas, the price must fall further, according to researchers at ABN AMRO, to 1.78 euros per kilo.

That is the expected price of natural gas in 2030, according to the bank.

The CO2 taxes will, according to the bank, be decisive for how competitive renewables such as green hydrogen will become.

Even with a sharp rise in CO2 taxes, which according to the bank will lead to a more expensive natural gas price in the next five years, the price of green hydrogen must first fall before a switch to sustainable fuel is worthwhile, according to the report.

The levies should start to apply in 2025.

According to the bank, industrial production processes, which can be converted into green hydrogen in the long term, are responsible for more than a third of CO2 emissions.

This makes it the largest source of CO2 emissions in the Netherlands.

See also: What is the future of road traffic: hydrogen or electric?