Hydrogen Production through Water Electrolysis Using Power from Renewables

Assumptions regarding estimates of CO₂ reduction effect and economic effect

• Hydrogen produced by electrolyzers is expected to mainly be used for heating.
• Hydrogen is expected to replace imported natural gas, which emits less CO₂ than other fossil fuels such as oil and coal, with equivalent heat values.
• Estimates of hydrogen production have been calculated on the basis of the assumption that electrolyzers with the following capacities will operate at the rate used for Germany’s national hydrogen strategy:
  In 2030: 70 GW (total value from major countries and regions which have established targets for the installation of electrolyzers).
  In 2050: On average, electrolyzers are expected to be installed at the rate of 88 GW/year.
• Estimates of economic impacts have been calculated using the following costs for electrolyzer installation:
  In 2030: 58,500 yen/kW
  In 2050: 50,000 yen/kW