Harvard Study Warns of High Costs for Green Hydrogen Despite Decarbonization Potential

A Harvard study reveals that despite the potential of green hydrogen to drive decarbonization, its high storage and distribution costs make it less competitive in many sectors. Learn why a diversified approach to reducing emissions is essential for a sustainable future.

Green Hydrogen's Role in Decarbonization Faces Cost Hurdles

Green hydrogen, often hailed as a critical solution to decarbonizing heavy industry, transportation, and energy storage, may not be as cost-effective as previously believed. According to a new study published in the journal Joule by Harvard University researchers, while production costs of green hydrogen are expected to drop, the high expenses associated with storage and distribution may prevent it from becoming competitive across several sectors.

Harvard Research Highlights Hidden Costs in Green Hydrogen Distribution

Green hydrogen is produced by splitting water molecules using renewable energy, providing a carbon-free alternative to fossil fuels. However, the study conducted by lead author Roxana Shafiee, a postdoctoral fellow at the Harvard University Center for the Environment, reveals that the often-overlooked storage and distribution costs may hinder its widespread adoption. These costs can vary significantly depending on the end-use sector, making green hydrogen prohibitively expensive compared to other decarbonization methods, such as directly removing CO2 from the atmosphere.

“Even if production costs decrease in line with predictions, storage and distribution costs will prevent hydrogen from being cost-competitive in many sectors,” Shafiee explained. “Our results challenge the growing perception of hydrogen as the ‘Swiss army knife of decarbonization’ and suggest that its use may be more limited than previously thought.”

Sector-Specific Challenges for Green Hydrogen Adoption

The Harvard study dives deep into the costs of using green hydrogen for reducing emissions across various sectors of the U.S. economy. By calculating the carbon-abatement costs (USD per ton of CO2 reduced) in each sector, the researchers provide insights into why green hydrogen may not be the ideal solution for all industries. For sectors where storage and transportation of hydrogen are particularly challenging, the economic feasibility of the fuel decreases, making alternatives like biofuels or electrification more attractive.

Broader Decarbonization Strategies Are Necessary

While green hydrogen remains promising for certain applications, co-author Daniel Schrag, Sturgis Hooper Professor of Geology and Professor of Public Policy at Harvard, emphasized the importance of diversifying decarbonization investments. "There are logistical and economic challenges with every possible solution — including biofuels and electrification," Schrag said. "At this early stage of decarbonization, it is crucial to invest in a wide range of strategies rather than relying solely on one approach that remains very, very expensive."

This balanced approach ensures that other promising technologies at earlier stages of development continue to receive attention, ultimately leading to more efficient and cost-effective ways of reducing carbon emissions.