Adi Bhashyam

There's a growing desire for a product. It happens to be lower carbon. China is meeting it, regardless of where the demand comes from.

Gift link: www.bloomberg.com/news/article...

A chart showing an s-curve of increasing green gases.

In a nutshell, a green gases quota ("Grüngasquote") mandates an increased share of "green gases" (which need to be defined) to be sold in the covered sectors. The basic idea is that this ramps up to 100% eventually, perhaps like this.

I’m surprised by this. Tube trailer transport is expensive but would usually expect $1-3/kg for usual distances. What distance is this for and does this not also include additional costs due to underutilization of the supply chain?

The European Hydrogen Bank subsidy is essentially a top-up and won’t close the cost gap fully which means subsidy winners are reliant on offtakers to pay the premium for green H2

Link: climate.ec.europa.eu/system/files...

"A price ceiling will apply to the Member State supply of projects bidding, expressed as a factor of three times the price of the last project awarded Innovation Fund support that is not from that same Member State. This approach will avoid
strategic bidding..."

@gnievchenko.bsky.social

If true thats a very stupid reason. The European Hydrogen Bank auction had a bid ceiling of €4.5/kg to qualify. Of course German projects will need more subsidy than projects in Iberia and the Nordics where subsidy bids were all <€0.50/kg.

Germany Scraps €350 Million in Subsidies for Hydrogen Projects Germany abandoned plans to funnel €350 million ($368 million) into hydrogen projects, putting clean-fuel goals even further from reach.

#Germany just cancelled funding for green hydrogen projects allocated as part of the first EU Hydrogen Bank auction. Apparently because the EU insisted the subsidy can’t be higher than €1.44/kg.

www.bloomberg.com/news/article...

Summary of Denmark’s industrial decarb strategy lately

Yeap where there is a clear alternative, H2 use won’t make much sense.

But part of this is also accepting that industrial decarbonization where H2 is needed won’t be cheap. Investing in some high-cost domestic H2 production could still be justified from a resilience perspective imo.

Part of this is driven by the high green hydrogen production cost in Europe.

Even with a 30% energy penalty, imported green ammonia cracked to hydrogen could be cheaper than local green H2 production in Germany.

Air Liquide receives EU support to develop the first large-scale project for the production, liquefaction, and distribution of low carbon and renewable hydrogen from ammonia | Air Liquide Air Liquide receives EU support to develop the first large-scale project for the production, liquefaction, and distribution of low carbon and renewable hydrogen from ammonia

Cracking imported clean ammonia to #hydrogen is gaining interest despite its poor efficiency.

Air Liquide just received a €110 million EU subsidy for an industrial-scale cracker in the Port of Antwerp.

#energysky

www.airliquide.com/group/press-...

Agree. Layering subsidies does not necessarily mean its a bad project.

IRA credits just seem to make some “interesting” business models work too.

One of many

We should expect to see more hydrogen project cancellations over the next years with a few remaining that actually make sense or that survive because they find ways to layer multiple subsidies (eg US tax credits and import incentives in Europe).

#energysky

Good chart! But numbers seem off. For example, Air Products does not have binding agreements for the supply of 0.66 Mtpa, its probably closer to 20% of that.

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Wait are we all denying being journalists? I can do that too, but I do think 'analyst' is a lot like 'journalist with some spreadsheets'.

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Norsk Hydro drops green hydrogen investment Norsk Hydro (Hydro) is to drop investment in green hydrogen and batteries after citing challenging market conditions.

Today's #HydrogenSoufflé is brought to you by Norsk Hydro. It turns out that there are more promising ways to decarbonise aluminium production, even in a country with endless renewable electricity and a storied role in the history of electrolysis.
www.gasworld.com/story/norsk-...

Will be interesting to see the network tariffs for the German hydrogen network.

Also the slower market ramp up for H2 could mean much of the 9,000km+ pipelines would carry only small amounts of H2 when they become operational in 2032.

Surprise surprise

Heard one of the heads of a pure play hydrogen fund today admit that hydrogen cars “didn’t work out”.

Important to note that very little money is actually being given out at the moment and there is no clarity on how the funds will actually be used yet.

DOE’s $2.2B investment in the Gulf Coast & Midwest H2Hubs isn’t just about infrastructure—it’s a bold experiment in using public funding to enable the deployment of key clean technologies.

Getting these hubs started is a major step toward clean industrial solutions. www.energy.gov/articles/bid...

Similar results under Japan’s upcoming CfD for clean ammonia import and co-firing in coal plants wouldn’t be too surprising

If selected, KOSPO will generate just 11.5% of the 6.5 TWh hydrogen-based electricity target under this auction

The other four likely didn’t qualify because their bids were higher than the confidential bid ceiling.

South Korea chooses controversial coal plant as sole winner of first clean hydrogen power auction KOSPO will generate only a tenth of the power that had been tendered by co-firing ammonia

Co-firing clean ammonia in coal and gas plants is costly and has limited environmental benefits. South Korea just learnt this the hard way:

❌ Only 1 of 5 bidders in its first ever clean hydrogen power auction qualified for final negotiations

www.hydrogeninsight.com/power/south-...

#energysky