# Low-carbon hydrogen and e-fuels: Feedstocks

Why cheap electricity decides who wins at hydrogen

Source page: https://www.materialinsights.org/energy/green_hydrogen_carriers/feedstocks/

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](https://www.materialinsights.org/energy/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)](https://www.materialinsights.org/commodities/nitrogen/) | 0.82 t N per t ammonia | ammonia synthesis | small (air separation power) | stoichiometry |
| [Pt Platinum](https://www.materialinsights.org/commodities/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 gas](https://www.materialinsights.org/energy/natural_gas/)[H₂O Water](https://www.materialinsights.org/commodities/water/)

#### What it is made into

| Product | Note |
|---|---|
| [NH3 Ammonia](https://www.materialinsights.org/chemicals/ammonia/) | the largest and most mature green hydrogen market |
| [MeOH Methanol](https://www.materialinsights.org/chemicals/methanol/) | e-methanol and bio-methanol for shipping and chemicals |
| [H2 Hydrogen](https://www.materialinsights.org/chemicals/hydrogen/) | the grey hydrogen market this family displaces |
| [HVO Renewable diesel and SAF](https://www.materialinsights.org/energy/hvo_saf/) | e-SAF competes with and blends alongside bio-based SAF |

## Other sections

- [Summary](https://www.materialinsights.org/energy/green_hydrogen_carriers/index.md)
- [Energy overview](https://www.materialinsights.org/energy/green_hydrogen_carriers/energy/index.md)
- [Correlation](https://www.materialinsights.org/energy/green_hydrogen_carriers/correlation/index.md)
- [Science and limits](https://www.materialinsights.org/energy/green_hydrogen_carriers/science/index.md)
- [Value chain](https://www.materialinsights.org/energy/green_hydrogen_carriers/valuechain/index.md)
- [Unit economics](https://www.materialinsights.org/energy/green_hydrogen_carriers/economics/index.md)
- [Engineering methods](https://www.materialinsights.org/energy/green_hydrogen_carriers/methods/index.md)
- [Equipment and suppliers](https://www.materialinsights.org/energy/green_hydrogen_carriers/equipment/index.md)
- [Overview](https://www.materialinsights.org/energy/green_hydrogen_carriers/overview/index.md)
- [Production route](https://www.materialinsights.org/energy/green_hydrogen_carriers/routes/index.md)
- [Production](https://www.materialinsights.org/energy/green_hydrogen_carriers/production/index.md)
- [Cycles](https://www.materialinsights.org/energy/green_hydrogen_carriers/cycles/index.md)
- [Trading](https://www.materialinsights.org/energy/green_hydrogen_carriers/trading/index.md)
- [Movement](https://www.materialinsights.org/energy/green_hydrogen_carriers/movement/index.md)
- [Regulation](https://www.materialinsights.org/energy/green_hydrogen_carriers/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/energy/green_hydrogen_carriers/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/energy/green_hydrogen_carriers/emissions/index.md)
- [Relationships](https://www.materialinsights.org/energy/green_hydrogen_carriers/links/index.md)