Highlights from McKinsey presentation on the cost of H2

1. Path to hydrogen competitiveness
A cost perspective
20 January 2020, McKinsey Company

2. AGENDA

3. drogen cost
mpetitiveness
closer than
eviously thought
Exhibit 4 | Overview of hydrogen applications
Transportation
Mid-size
vehicle with
short range
SUV for
family usage
Large
passenger
vehicle for
frequent
usage
Large
passenger
vehicle for
commercial
usage
Medium-duty
truck (MDT) for
regional haul
Bus for
short- distance
urban
transportation
Heavy-duty
truck (HDT) for
long-haul
transportation
Bus for
long-range
urban
transportation
Small vehicle
for urban
transportation
Lightweight
truck/van
(LCV) for urban
distribution
Coaches for
long-distance
transportation
Passenger
train for
regional
transport
Regional ferry
RoPax
(large ferries
for vehicles
and people)
Synfuels for
aviation
Hydrogen
boilers (old flat
city centre)
Blending of
hydrogen in
natural gas
boilers
Fuel
cell-based
CHP
(old hospital)
Hybrid heat
pump and
boiler
Hydrogen
boilers (new-
build house)
Fuel
cell-based
CHP (old flat
city centre)
Hydrogen
boilers (old
hospital)
Fuel
cell-based
CHP
(new-build
house)
Heat and power
for buildings
Simple cycle
hydrogen
turbine
Fuel cell-based
remote
generator
Hydrogen
furnace for
medium-grade
heat
Combined
cycle
hydrogen
turbine
Fuel cell-
based
backup
generator
Heat and power
for industry
Hydrogen
furnace for
High-grade
heat
Low-carbon
ammonia
production
CCU
(methanol
production)
Low-carbon
steel – H2-DRI
Refining
Industry
feedstock
Forklifts
CO2 global emissions
100% = 37 Gt
Compact
vehicle
for urban
transportation
17% 19% 16% 6%
Mid-size
vehicle with
long range
In addition, hydrogen can also be used in, e.g.
Mobility: Container ships, tankers, tractors, container ships, motorbikes, tractors, off-road
applications, fuel cell airplanes.
Other: Auxiliary power units, large scale CHP for industry, mining equipment, metals
processing (non-DRI steel), etc..

5. ANALYSIS