Russia has all the capabilities to produce competitive blue hydrogen at a cost of $1.5-2/kilogram, according to Russia’s deputy minister of energy Pavel Sorokin.

"Aside from the carbon footprint and climatic effect, in Russia steam reforming of methane, gray hydrogen is one of the cheapest production methods with a cost price below $1/kg,” Sorokin said at the session "Development of a low-carbon economy and hydrogen energy in the Khanty-Mansi Autonomous Okrug - Yugra."

“Blue hydrogen with a cost price of $1.5-2/kg is also competitive for Russia. We have a great competitive advantage, which is cheap methane, affordable energy and accumulated great scientific experience," he says.

According to Sorokin, with the proper development of technologies, as well as free access to finance, the hydrogen industry can become profitable after 10-12 years, Kallanish notes.

“However, for the full-fledged development of the industry, a number of important tasks have to be solved, first of all, this is the production cost...First of all, it is the production cost, because now the cost of producing green hydrogen is from $6 to $12/kg at a competitive level of $1.5-$2/kg. The second point is the development of hydrogen transportation and the third is its consumption,” the deputy minister notes. “We have seen with the example of renewable energy sources that within 15 years such non-traditional energy sectors can be unprofitable. But taking into account unlimited access to funds, they, at the same time, may well reach the level of serial production and, thus, bring technologies to the scale of economically viable ones.”

With hydrogen, there will be the same scenario - about 10-12 years of non-commercial losses - and then the path to profitability and exponential growth is likely, he added.

By 2050, Russia will be able to export up to 33.5 million tonnes of hydrogen and take up to 20% of the world hydrogen market, worth $100 billion/year, according to the energy ministry.