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Grey hydrogen refers to manufacture of the gas using fossil fuels and currently accounts for 95 per cent of production. Blue hydrogen is extracted from natural gas, through a process called methane reformation, which relies on carbon capture and storage. Technology that uses renewables to split water molecules through electrolysis, is being increasingly favoured, as countries look to eliminate fossil fuels from future energy mixes. Green hydrogen is already close to being competitive today in regions where all the favourable conditions align, but these are usually far from demand centres, the intergovernmental agency said in its report. It cites Patagonia as an example, where wind energy could have a capacity factor of almost 50 per cent, with an electricity cost of $25-30 MWh. That is enough to achieve a green hydrogen production cost of about $2.5/kg, which is close to the blue hydrogen cost range, Irena said. But Irena also points out that green hydrogen is still 2-3 times m

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