Low-carbon hydrogen and e-fuels: Feedstocks
Why cheap electricity decides who wins at hydrogen
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Green hydrogen is made from electricity and water; its derivatives add nitrogen (ammonia) or CO2 (methanol, e-SAF). Electricity is 60-70% of green hydrogen cost (indicative) and green hydrogen is up to 60% of e-SAF cost, so regions with cheap, high-capacity-factor solar and wind win: Gulf, Chile, Australia, western India, north-west China.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Renewable electricity | about 50-55 MWh per t H2; about 10 MWh per t e-methanol; about 25-35 MWh per t e-SAF (indicative) | energy for electrolysis | about 60-70% of green H2 cost (indicative) | hydrogen tile; indicative |
| Water | about 9-15 t per t H2 | hydrogen source | small; desalination adds about $0.01-0.02/kg (indicative) | hydrogen tile |
| Gas Natural gas | about 0.16 MMBtu per kg H2 | feed and fuel for reforming with CCS | dominant for blue hydrogen | hydrogen tile |
| CO2 (biogenic, industrial or direct air capture) | 1.37 t per t methanol; at least 3.1 t per t e-SAF hydrocarbon | carbon source for e-fuels | 5-10% of e-SAF levelised cost (PwC Strategy&) | stoichiometry; PwC Strategy& (2026) |
| N Nitrogen (ammonia) | 0.82 t N per t ammonia | ammonia synthesis | small (air separation power) | stoichiometry |
| Pt Platinum | grams per MW of stack (indicative) | catalysts | small but supply-constrained (iridium) | hydrogen tile (supply risk) |
Who is low-cost, and why
Lowest-cost green hydrogen comes from hybrid solar-wind sites with over 50% capacity factor and cheap capital: western India, Saudi Arabia, Oman, Chile, Australia and north-west China. Blue hydrogen is cheapest in the US Gulf Coast and Qatar where gas and CO2 storage exist. Europe is high cost and depends on imports.
Raw materials on the commodity table
Gas Natural gasH₂O WaterWhat it is made into
| Product | Note |
|---|---|
| NH3 Ammonia | the largest and most mature green hydrogen market |
| MeOH Methanol | e-methanol and bio-methanol for shipping and chemicals |
| H2 Hydrogen | the grey hydrogen market this family displaces |
| HVO Renewable diesel and SAF | e-SAF competes with and blends alongside bio-based SAF |