Green hydrogen is now the cheaper option, when compared with producing the gas from polluting sources.
That’s according to analysis by Carbon Tracker, which claims that the Ukraine War has inadvertently helped to reduce the cost of generating hydrogen with an electrolyser.
The company reports that there has been a swing in the market to reflect this, with around $73 billion (£65.2bn) being spent globally on green hydrogen production since Putin decided to invade Ukraine.
Gas prices and the volatility of the fossil fuel market also means that it is currently cheaper to make hydrogen from green sources, rather than use natural gas, it claims.
Kofi Mbuk, Senior Cleantech Analyst at Carbon Tracker, said: “There has been a dramatic change in the price of hydrogen sparked by the invasion of Ukraine by Russia.”
He goes on to explain that green hydrogen will now become more attractive in the market irrespective of the outcome of the conflict.
Hydrogen is also being backed by the European Commission, with President Ursula Von Der Leyen recently announcing €3 billion (£2.6bn) would become available to boost the sector on the continent.
“[Hydrogen] is key in diversifying our energy sources. We need to bring this niche market to scale,” she said.
The International Energy Agency also justifies this perspective of green hydrogen dropping in price, reporting that the cost of electrolysers could drop by 70% from today’s price in the coming months and years.