The war-driven hike in fossil fuel prices is narrowing the cost gap, making the clean energy alternative look like a good option
Soaring oil and gas prices since February’s outbreak of hostilities have narrowed the cost gap between the zero-emission fuel and its fossil rivals, paving the way for wider uptake across Asia.
“The war-driven surge in oil and gas prices is narrowing the cost gap between grey and green hydrogen, creating conditions for greater uptake,” said Charith Konda, energy specialist for South Asia at the Institute for Energy Economics and Financial Analysis.
Grey hydrogen, the industry standard, comes from natural gas. Green hydrogen – made by using renewable electricity to split water – yields a clean, storable fuel that emits only water vapour when used.
It has been billed for years as a cornerstone of Asia’s net-zero strategy, with potential applications ranging from steelmaking and fertiliser production to shipping and aviation.
