A NEW study estimates that sustainably produced hydrogen could reach price parity with its fossil-based counterpart before 2035, but experts said that this alone will not be enough to keep the renewable fuel affordable for Singaporeans.

A report by Deloitte published on Thursday (Jun 8) said that the price of green hydrogen – or hydrogen produced with renewable power – could come down sufficiently to match that of hydrogen produced from fossil fuels by 2035. While almost all of the hydrogen produced today is from fossil fuels and is therefore not renewable, Deloitte expects green hydrogen to account for 85 per cent of the hydrogen market by 2050.

Singapore is unable to produce green hydrogen on its own at scale, and is therefore exploring hydrogen imports as part of its goal of achieving net zero emissions by 2050. Deloitte estimates that a fifth of global green hydrogen supply in 2050 will be traded around the world, with the highest export potential relative to domestic demand coming from North Africa and Australia.