Green Hydrogen Production Cost Falls Below Fossil Fuels for First Time
Netherlands, Tuesday, 6 January 2026.
Researchers have achieved a breakthrough that makes green hydrogen cheaper than natural gas alternatives at just $1.54 per kilogram. The innovative process replaces traditional oxygen production with glucose oxidation from agricultural waste, requiring 400 millivolts less energy while creating valuable formate as a byproduct worth $4.63 per kilogram.
Building on Netherlands’ Infrastructure Foundation
This cost breakthrough comes as the Netherlands advances its ambitious hydrogen infrastructure plans, with King Willem-Alexander having officially launched construction of Europe’s first national hydrogen pipeline network in 2026 [GPT]. The infrastructure project, which aims to connect industrial clusters along the Dutch North Sea coast by 2030, provides the essential distribution framework needed to capitalize on these new cost efficiencies [GPT]. However, recent assessments reveal significant challenges in the sector’s financial outlook, with the Algemene Rekenkamer identifying a €1.8 billion financing gap in the national hydrogen transport network and expected start-up losses reaching €2.5 billion [3].
Revolutionary Glucose-Based Production Method
The breakthrough emerged from collaboration between researchers at China Agricultural University and Nanyang Technological University, who published their findings in eScience on January 4, 2026 [1]. Their innovative approach replaces conventional electrolysis oxygen development with glucose oxidation from agricultural residues, reducing required voltage by 400 millivolts [1]. The system employs a specialized catalyst of cobalt oxyhydroxide doped with exactly 5 percent copper, which selectively converts approximately 80 percent of glucose molecules into formiate through an alpha-cleavage route [1]. This dual-purpose process not only produces hydrogen at $1.54 per kilogram but generates formiate worth approximately $4.63 per kilogram as a valuable industrial byproduct used in leather tanneries and rubber production [1].
Enhanced Efficiency Through Process Optimization
Complementing the glucose-based breakthrough, Norwegian researcher Yukihiro Takahashi from NTNU developed methods to further reduce costs by improving the electroplating process in alkaline water electrolysis systems by December 28, 2025 [2]. Takahashi’s innovation introduces complexing agents during electroplating to ensure more uniform nickel coating on electrodes, reducing waste and improving performance [2]. The method enables manufacturers to calculate coating appearance before electrode production, minimizing production failures and optimization time [2]. When powered by concentrated sunlight and triple-junction solar cells, the combined systems achieved hydrogen production rates of 519 micromol per hour per square centimeter [1].
Market Impact Amid Sector Challenges
The timing proves critical as the hydrogen sector faces substantial headwinds in 2025, with only 0.2 GW of electrolyser capacity under construction compared to the 4 GW target for 2030 [3]. Current Dutch hydrogen production remains dominated by grey hydrogen at 80 percent, generating 13 million tonnes of CO2 emissions annually [3]. The new cost-competitive production method could accelerate adoption, particularly as regional initiatives gain momentum. In the Regio Foodvalley area, the Community of Practice Waterstof led by Dina El Filali and Erik van der Veer demonstrated three hydrogen projects on November 12, 2025, showcasing applications from green hydrogen pilot installations to hydrogen-powered vehicles [8]. The breakthrough technology tested successfully with raw extracts from cotton and wheat straw without intensive pretreatment, demonstrating practical scalability for agricultural regions [1].