LCOH Calculator: Levelized Cost of Hydrogen per Kilogram
The levelized cost of hydrogen (LCOH) is the all-in cost to produce one kilogram of hydrogen across a project's entire life — capital, operating costs, and electricity combined, then divided by total output. It's the hydrogen equivalent of LCOE for solar and wind: the single number that determines whether a green hydrogen project is economically competitive. Today's green hydrogen typically lands in the $4–8/kg range versus roughly $1–2/kg for conventional "grey" hydrogen made from natural gas. Cheap electricity and high utilization are the biggest levers — the electricity cost alone can represent 60–80% of LCOH.
levelized cost of hydrogen
842,308 kg/yr
$1,401,954.54/yr annualized
$360,000.00/yr
$1,752,000.00/yr
Results update live as you type. For planning and field-check estimates — always verify against applicable standards and equipment ratings.
How we calculate this →How LCOH is calculated: capital recovery, O&M, and electricity
LCOH follows the same levelized-cost framework used for solar and wind. Total capital cost ($/kW × MW × 1,000) is converted to an annualized charge using a capital recovery factor (CRF) — the standard annuity formula that spreads the upfront investment over the project lifetime at the chosen discount rate. A 15-year project at 8% discount gives a CRF of about 0.117, meaning roughly 11.7% of total capital is the annual debt-service equivalent.
Annual hydrogen production depends on how hard the electrolyzer runs. Capacity factor is the fraction of the year at full power: 50% means 4,380 operating hours per year. Annual output in kg equals power (kW) × hours ÷ efficiency (kWh/kg). A 10 MW electrolyzer at 52 kWh/kg running 50% of the year produces about 840,000 kg (840 metric tons) annually.
Electricity cost is the dominant term: annual H2 production (kg) × efficiency (kWh/kg) × electricity price ($/kWh). At $40/MWh and 52 kWh/kg, electricity costs $2.08/kg before any capital or O&M is added. Drop the power price to $20/MWh and electricity cost falls to $1.04/kg, illustrating why co-location with cheap renewable generation is the central strategy for competitive green hydrogen.
LCOH = (annualized capital + annual O&M + annual electricity cost) ÷ annual kg produced. The breakdown reveals the lever: in most scenarios electricity is 60–80% of LCOH, making power price and capacity factor far more important than squeezing capital costs.