LNEG-LCOH: Innovative Tool for Calculating Hydrogen Costs
LNEG launched a free calculator to estimate the Levelized Cost of Hydrogen across the entire value chain, from production to distribution.
In January 2025, the National Laboratory of Energy and Geology (LNEG) released LNEG-LCOH, a free tool that calculates the Levelized Cost of Hydrogen (LCOH), estimating green hydrogen costs across the entire value chain — production, storage and distribution. The tool is available in Portuguese and English on LNEG's official website.
How it helps developers and policymakers
- Allows scenario simulation with variables such as electricity cost and electrolyzer efficiency.
- Compares technologies and production pathways to optimize investment decisions.
- Supports policymakers, companies and researchers in shaping energy transition strategies.
The tool addresses one of the main barriers to green hydrogen: the high cost of electrolysis-based production and the lack of transport and storage infrastructure, helping assess project economic viability and attract strategic investment.