August 24, 2020 Read More →

Renewable hydrogen deployment at risk

S&P Global Platts:

Capital shortfalls and government inaction threaten renewable hydrogen projects with even a high level of deployment insufficient to meet demand projections for the decarbonized energy carrier, sustainable energy think-tank the Institute for Energy Economics and Financial Analysis (IEEFA) said in a report Aug. 24.

IEEFA estimated some 50 viable renewable hydrogen projects had been announced globally in the past year with a production potential of four million mt per year H2 via 11 GW of electrolyzer capacity and 50 GW of renewable capacity. In total the projects would need investment of $75 billion.

0″There is, however, a serious risk that some of these projects may not be undertaken because of still-unfavorable economics and/or a lack of financing,” report author Yong Por said.

For projects to be successful, the manufacture of electrolyzers, fuel cells and associated equipment (hydrogen compressors, boilers, drive trains, storage tanks, bunkering facilities, pipelines, sensors, measuring equipment and liquefaction plants) would need to be significantly scaled up, while seaborne hydrogen transportation costs would need to fall, Por said.

[Henry Edwardes-Evans]

More: Renewable hydrogen projects ‘at risk of government inaction, capital shortfall’

Posted in: IEEFA In the News

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