Mediterranean green hydrogen as low as €2.5/kg in hybrid setups

A new study from the University of Naples Federico II calculates that the levelized cost of hydrogen (LCOH) at Mediterranean ports ranges from €5.7–8.6/kg ($6.5–10.1/kg) in fully renewable configurations, dropping to €2.5–13/kg in hybrid systems that combine renewable generation with grid electricity. The wide hybrid range reflects the significant variation in grid power prices and carbon emission intensities across different port locations around the Mediterranean basin.

Solar energy emerged as the most reliable renewable resource in the study, with capacity factors consistently between 18.1% and 24.4% across all assessed sites. Wind energy can outperform solar in specific locations, approaching capacity factors of 30%, but remains highly site-dependent. Wave energy showed very low capacity factors at many ports, limiting its practical contribution to hydrogen production.

On the industry side, ITM Power has partnered with German defense contractor Rheinmetall on the Giga PtX project, which envisions several hundred decentralized synthetic fuel plants across Europe for NATO armed forces — each with up to 50 MW of electrolysis capacity producing 5,000–7,000 tonnes of e-fuel per year. Meanwhile, Ceres launched a solid oxide electrolyser stack operating at 450–630°C, claiming roughly 30% higher efficiency than conventional low-temperature systems, and Sunfire unveiled a new 50 MW pressurized alkaline electrolyser designed for faster, lower-cost deployment.

In Hamburg, MB Energy has received a permit to build Germany's potentially first large-scale ammonia import terminal at the Port of Hamburg, targeting 600,000 metric tonnes per year. At EU level, the European Commission published its second PCI/PMI list of 235 cross-border energy infrastructure projects, of which 100 are hydrogen and electrolyser projects — underscoring the bloc's commitment to scaling up clean hydrogen infrastructure for decarbonization.