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Surging orders for a type of ship called a “Very Large Ammonia Carrier” or “VLAC” provide a clear signal that the shipping industry expects a massive trading market for clean ammonia, and implicitly for clean hydrogen, to emerge in the second half of this decade.
Toyota, Hyundai and General Motors were early movers in developing fuel cell technology as a potential alternative to batteries for zero emission cars. However, slow adoption of fuel cells for passenger vehicles forced a recalibration in strategy for all three companies.
After a period of severe disruption due to interest rates, inflation, regulation and low natural gas prices, the hydrogen economy is experiencing a very gradual and still fragile recovery in activity.
Commercial activity in the green hydrogen sector has fallen well below expectations in recent months. With certain headwinds diminishing, however, a number of projects have taken key steps forward.
The CEO of Linde, Sanjiv Lamba, used the Company's 4Q23 earnings call to provide some very pointed commentary on its clean hydrogen strategy in the US
Even as the pace of new investment commitments for green hydrogen projects slowed towards the end of last year, a number of green hydrogen plants ramped up production. Some of these projects are small but still worth noting because they validate the technology, advance the learning curve, and contribute to a virtuous cycle of adoption.
Investment dollars continue to flow into large hydrogen projects in the US and Europe despite sector challenges.
While still sporadic, electrolyzer sale contracts are getting larger and reflect a diversifying arrany of end uses.
European governments are sponsoring auctions for clean hydrogen in order to jump start the market.
As more low-carbon hydrogen production comes on line, the funding and development of pipelines to facilitate distribution is garnering more attention.
Notwithstanding supply chain and other issues, a number of small clean hydrogen projects launched in recent months.
Institutional investors are increasingly focused on the hydrogen sector including two large private equity funds that closed in second half of 2022.
Using nuclear power to produce hydrogen at scale has the potential to optimize regional energy resources and enable further deployment of intermittent energy sources such as solar and wind.
The Inflation Reduction Act of 2022 (IRA) provides meaningful financial support and certainty over time that ensures hydrogen will play an important role in decarbonizing the US economy.
As the US Department of Energy takes initial steps towards funding the $8 billion “hydrogen hub” program embedded in last year’s infrastructure bill, activity in the US clean hydrogen sector is beginning to accelerate.
Hydrogen can serve as an “energy carrier” that offers the potential benefit of moving renewable energy (e.g. solar and wind) from places where it is abundant and cheap to places with high energy needs but less resources.
In the context of clean energy, hydrogen primarily serves as a storage mechanism for solar, wind and hydropower, similar to a battery.
Just as charging station availability is a constraint on battery electric vehicle adoption, maintaining momentum in the Hydrogen Economy will require dependable supply chains for clean hydrogen.
Exponential growth in clean hydrogen production projects around the world will drive strong demand for “electrolyzers” over a multi-decade timespan.
A rapidly expanding hydrogen economy will spur demand for specialized equipment to produce, store, transport and utilize clean hydrogen.
A “fuel cell” is a device that generates an electric current from the chemical reactions entailed in combining hydrogen and oxygen into water.
The Hydrogen Council estimates that mobility applications will represent ~20% of the demand for hydrogen by 2050.
In the burgeoning hydrogen economy, manufacturers of specialized cylinders, tanks and trailers for transporting and storing hydrogen have been among the earliest to translate momentum into tangible results.
The hydrogen economy is experiencing a powerful virtuous cycle of R&D, public and private investment and adoption.
The cost of producing green hydrogen is primarily a function of (1) the cost of renewable energy; (2) the cost of equipment (CapEx) and (3) the efficiency of that equipment in converting renewable energy into hydrogen.
Earlier this month, the DOE hosted its first "Hydrogen Shot Summit". The target for the "Shot" is to reduce the cost of producing low carbon hydrogen to $1 for 1kg in 1 decade (one kg of hydrogen provides approximately the same energy as 1 gallon of diesel).
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