Clean Energy Business Council MENA’s Post

What are the key challenges facing the hydrogen market in the U.S. in 2024 1.          Production and scaling: Meeting production targets is a major challenge. The U.S. government has set an ambitious goal of 10GW of low-carbon hydrogen production capacity by 2030, but scaling up production, especially for blue hydrogen, is proving difficult. 2.          Cost reduction: Reducing the manufacturing costs of hydrogen remains a significant hurdle to widespread adoption. High production costs make it challenging for hydrogen to compete with traditional energy sources. 3.          Infrastructure development: Building the necessary infrastructure for large-scale hydrogen production, transportation, and storage requires significant investment. This includes developing pipelines, storage facilities, and distribution networks. 4.          Demand creation: Stimulating demand for hydrogen is crucial. The lack of offtake contracts is cited as the biggest cause of project delays. Creating a robust market for clean hydrogen is essential for the industry's growth. 5.          Regulatory framework: Developing a clear and comprehensive regulatory framework for hydrogen production, transportation, and use is needed to attract investment and ensure safety and environmental responsibility. 6.          Balancing the energy system: As renewable energy sources become more prevalent, using hydrogen as a reliable energy carrier to balance the unpredictable nature of renewables is a challenge. 7.          Storage: Developing sufficient and efficient hydrogen storage solutions is crucial. By 2030, an estimated 3.4TWh of hydrogen storage will be needed, increasing to 9.8TWh by 2035. 8.          Transportation and logistics: As hydrogen production scales up, managing the distribution of hydrogen efficiently becomes more complex. 9.          Policy uncertainty: Ongoing debates over hydrogen tax credits and incentives create a period of uncertainty for investors and developers. 10.        Competition with electrification: In some sectors, direct electrification may be more efficient than using hydrogen, requiring careful consideration of where hydrogen is most appropriately applied. Addressing these challenges will be crucial for the U.S. hydrogen market to realize its potential in 2024 and beyond. Collaboration between industry, government, and academia is seen as essential to overcome these hurdles and drive innovation in the hydrogen sector. 🚀 Is Hydrogen the Future of U.S. Transportation, or Just a Pipe Dream? 🚀 What do you think? If you found this post insightful, please give it a like and repost it to spark more conversations. Let's drive the future of transportation together! 🚀 #VehicleInnovation #HydrogenEconomy #SustainableTransport

The global hydrogen market is poised for significant growth, expected to expand from $182.4 billion in 2022 to $303.5 billion by 2032, with a CAGR of 5.4%. Asia-Pacific is leading this surge, with a projected growth rate of over 6% during the same period. Green hydrogen is set to dominate, potentially making up 50-65% of the global supply by 2050. However, the cost of renewable hydrogen has risen 30-65% recently due to increased capital expenditures. Despite these challenges, advancements in technology and supportive policies, especially in North America, are driving this market forward. Hydrogen is crucial for decarbonizing industries and achieving a sustainable future. The continued collaboration between governments and businesses will be key to unlocking its full potential. #Hydrogen #GreenHydrogen #HydrogenEconomy #HydrogenMarket #CleanEnergy #Sustainability

𝗜𝗻𝗱𝗶𝗮 𝗰𝗵𝗮𝗿𝘁𝘀 𝗽𝗮𝘁𝗵 𝗳𝗼𝗿 𝗚𝗿𝗲𝗲𝗻 𝗛𝘆𝗱𝗿𝗼𝗴𝗲𝗻, 𝗳𝗼𝗰𝘂𝘀𝘀𝗲𝘀 𝗼𝗻 𝗲𝗻𝗵𝗮𝗻𝗰𝗶𝗻𝗴 𝗲𝗹𝗲𝗰𝘁𝗿𝗼𝗹𝘆𝘇𝗲𝗿 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 🌿🌍🇮🇳 Green hydrogen, produced using renewable energy sources like solar and wind, holds immense potential for a more sustainable future. As a clean, versatile, and high-energy-density fuel, it holds the capacity to decarbonize various sectors, including industry, transportation, and power generation. Recognizing this significance, India has taken significant strides in becoming a frontrunner in the green hydrogen revolution. According to the discussions held recently, it is inferred that increasing efficiency of electrolyzers is a key aspect which needs to be looked into in order to bring down the cost of Green Hydrogen. 𝚃𝚑𝚎 𝚏𝚘𝚕𝚕𝚘𝚠𝚒𝚗𝚐 𝚊𝚛𝚝𝚒𝚌𝚕𝚎 𝚍𝚎𝚙𝚒𝚌𝚝𝚜 𝚑𝚘𝚠 𝚔𝚎𝚢 𝚐𝚘𝚟𝚎𝚛𝚗𝚖𝚎𝚗𝚝, 𝚊𝚌𝚊𝚍𝚎𝚖𝚒𝚌 𝚊𝚗𝚍 𝚒𝚗𝚍𝚞𝚜𝚝𝚛𝚢 𝚜𝚝𝚊𝚔𝚎𝚑𝚘𝚕𝚍𝚎𝚛𝚜 𝚊𝚛𝚎 𝚌𝚘𝚕𝚕𝚎𝚌𝚝𝚒𝚟𝚎𝚕𝚢 𝚠𝚘𝚛𝚔𝚒𝚗𝚐 𝚝𝚘 𝚌𝚘𝚗𝚜𝚘𝚕𝚒𝚍𝚊𝚝𝚎 𝚎𝚏𝚏𝚘𝚛𝚝𝚜 𝚝𝚘𝚠𝚊𝚛𝚍𝚜 𝙽𝚊𝚝𝚒𝚘𝚗𝚊𝚕 𝙶𝚛𝚎𝚎𝚗 𝙷𝚢𝚍𝚛𝚘𝚐𝚎𝚗 𝙼𝚒𝚜𝚜𝚒𝚘𝚗’𝚜 𝚛𝚎𝚜𝚎𝚊𝚛𝚌𝚑 𝚊𝚗𝚍 𝚍𝚎𝚟𝚎𝚕𝚘𝚙𝚖𝚎𝚗𝚝 𝚘𝚋𝚓𝚎𝚌𝚝𝚒𝚟𝚎𝚜.  #greenhydrogen #india #indianeconomy #sustainabledevelopment #renewableenergy #renewables #sustainability #globalwarming #climatestrategy #climate #climateaction #indianbudget

I had the opportunity to read whitepaper “Reducing low-carbon hydrogen investment and operating costs,” a recent whitepaper by Capgemini. It doesn’t shy away from addressing the cost barriers currently impeding the competitiveness of low-carbon hydrogen compared to its counterparts.   The report identifies several critical factors contributing to the high costs of clean hydrogen production. The biggest being the price of low-carbon electricity, which constitutes nearly half of the levelized cost of hydrogen. Additionally, the whitepaper highlights challenges such as rising interest rates, difficulties in securing reliable EPC partners, and the lack of sufficient infrastructure which are all contributing to stalling project advancements.   From the survey conducted across nearly 120 companies globally, it's clear that the industry recognizes these issues. Over half of the respondents indicated that reforms in public policy, including subsidies and more stringent carbon taxation, are crucial for reducing costs. Meanwhile, the private sector acknowledges the need for breakthroughs in electrolyzer efficiency and the development of more advanced technologies like PEM and high-temperature electrolysis to cut down electricity usage.   Capgemini's report also brings a glimmer of hope, underscoring emerging positive developments such as the EU’s efforts to define and promote renewable hydrogen through regulatory reforms and market incentives.   This is an interesting read and I highly encourage you to take a look if you have the time. As we continue to strive towards a more sustainable energy landscape, the dialogues sparked by such reports are crucial for fostering the innovation and policy changes needed to ensure the success of clean hydrogen.   Do you disagree with any of this? #greenhydrogen #cleanhydrogen #electrolysers #electrolyzers #electrolysis #subsidies #H2 #finance #interestrates #inflation #capgemini https://lnkd.in/e8gJ5BR2

What are the key challenges facing the hydrogen market in the U.S. in 2024 there are several key challenges facing the hydrogen market in the U.S. in 2024: 1.          Production and scaling: Meeting production targets is a major challenge. The U.S. government has set an ambitious goal of 10GW of low-carbon hydrogen production capacity by 2030, but scaling up production, especially for blue hydrogen, is proving difficult. 2.          Cost reduction: Reducing the manufacturing costs of hydrogen remains a significant hurdle to widespread adoption. High production costs make it challenging for hydrogen to compete with traditional energy sources. 3.          Infrastructure development: Building the necessary infrastructure for large-scale hydrogen production, transportation, and storage requires significant investment. This includes developing pipelines, storage facilities, and distribution networks. 4.          Demand creation: Stimulating demand for hydrogen is crucial. The lack of offtake contracts is cited as the biggest cause of project delays. Creating a robust market for clean hydrogen is essential for the industry's growth. 5.          Regulatory framework: Developing a clear and comprehensive regulatory framework for hydrogen production, transportation, and use is needed to attract investment and ensure safety and environmental responsibility. 6.          Balancing the energy system: As renewable energy sources become more prevalent, using hydrogen as a reliable energy carrier to balance the unpredictable nature of renewables is a challenge. 7.          Storage: Developing sufficient and efficient hydrogen storage solutions is crucial. By 2030, an estimated 3.4TWh of hydrogen storage will be needed, increasing to 9.8TWh by 2035. 8.          Transportation and logistics: As hydrogen production scales up, managing the distribution of hydrogen efficiently becomes more complex. 9.          Policy uncertainty: Ongoing debates over hydrogen tax credits and incentives create a period of uncertainty for investors and developers. 10.        Competition with electrification: In some sectors, direct electrification may be more efficient than using hydrogen, requiring careful consideration of where hydrogen is most appropriately applied. Addressing these challenges will be crucial for the U.S. hydrogen market to realize its potential in 2024 and beyond. Collaboration between industry, government, and academia is seen as essential to overcome these hurdles and drive innovation in the hydrogen sector. 🚀 Is Hydrogen the Future of U.S. Transportation, or Just a Pipe Dream? 🚀 What do you think? If you found this post insightful, please give it a like and repost it to spark more conversations. Let's drive the future of transportation together! 🚀 #VehicleInnovation #HydrogenEconomy #SustainableTransport#ACT

Based on the report published by Boston Consulting Group (BCG) Originally, people expected green hydrogen production costs to be below €3/kg, but this optimistic outlook is not coming true. The current situation involves a difficult economic environment, higher energy prices, and problems in the wind power and electrolyzer supply chains. These challenges make it unrealistic to achieve the initially projected low production costs, at least for the next decade. Real hydrogen projects in development now suggest that the more realistic range for green hydrogen production costs in central Europe by 2030 is €5–8 Even at the lower end of this cost range, green hydrogen might struggle to compete with alternative decarbonization technologies. At the higher end of the cost range, producers of green hydrogen might face difficulties in finding buyers, creating challenges for the commercial viability of these projects. Source: https://lnkd.in/eykehsBg #hydrogen #costs #eugreendeal #ammonia #import #realitycheck #electrolysis #greenenergy #sustainability #renewablepower #greenhydrogen

The Green Hydrogen Revolution: Challenges and Opportunities We've been closely monitoring the evolution of the hydrogen market, particularly the shift towards green hydrogen. A recent PwC analysis highlights some critical insights that I believe warrant discussion among energy professionals: 1. Cost Disparity: While grey hydrogen costs €1-€2/kg, green hydrogen ranges from €3-€8/kg. This gap presents both a challenge and an opportunity for innovation in production methods. 2. Geographic Advantages: Regions like the Middle East, Africa, and Australia are poised to become green hydrogen powerhouses due to abundant renewable resources. Europe faces higher production costs, emphasizing the need for strategic partnerships and import strategies. 3. Demand Projections: Hydrogen demand is set to skyrocket post-2030, potentially reaching 220-600 Mt by 2050 in Paris Agreement-aligned scenarios. This growth trajectory signals a massive market opportunity, but also underscores the urgency of scaling up infrastructure. 4. Sector-Specific Adoption: With industry (39%), transport (30%), and buildings (26%) projected to be the primary consumers, we need to tailor our strategies to sector-specific needs and challenges. 5. Regulatory Influence: The future of green hydrogen trade will be significantly shaped by regulatory frameworks. Staying ahead of policy developments will be crucial for businesses in this space. These insights point to a transformative period ahead for the energy sector. The transition to green hydrogen is not just an environmental imperative but a complex economic and technological challenge. What are your thoughts on these projections? How is your organization preparing for the hydrogen economy? I encourage you to read the full PwC analysis for a deeper dive into these trends. Let's continue this critical conversation in the comments below. https://lnkd.in/gaXu-Rt #Hydrogen #GreenHydrogen #EnergyTransition #SustainableEnergy #ClimateAction

Story behind the Silver Award - Disruptive Technology of Hydrogen Storage   Hydrogen has become the key element of renewable and clean energy in recent years, while its difficulty in storage makes usage expansion and efficiency an uneasy task. The Silver Award 🥈 winner of this year’s TERA-Award also noticed that and focused their ideas on the breakthrough of this small but important area. It is time to introduce Hydro X from Israel, who won the award with their “Reshaping H2 Storage and Transportation” project!   “Hydro X has developed a disruptive technology which enables us to store and transport hydrogen in this non-toxic, non-flammable, non-explosive, and energy efficient carrier at a cost below 1 USD per kilogram of hydrogen.” Assaf Sayada, CEO of Hydro X, and his team shared their concerns and the challenges faced by humankind and our planet, as well as their insights on the future of green energy and sustainability. They came up with this innovative technique of storing hydrogen at close-to-ambient temperature and pressure, significantly reducing storage and transportation costs.   A small step in the details can lead to a giant leap in overall technological progress. We look forward to more submissions in the future that can continue to bring advancements and breakthroughs to green energy !   Revisit this year’s TERA-Award: https://tera-award.life/   #TERAAward #SmartEnergy #InnovationCompetition #Hydrogen

European Union funded a study for Reducing Low Carbon Hydrogen Investment & Operating Costs The study by Capgemini Financial Services part of Capgemini and innoEnergy GmbH InnoEnergy 90 million tons of low-carbon hydrogen4 by 2030 would be enough to sustain claims that the world is on track to limit warming to 1.5° above pre-industrial levels. But is this really plausible? On the surface, it may seem so. After all, 150 million tons in 2030 would be a 50% increase over the current 95 million tons of annual demand in seven years. This would only requiring a 6% compound annual growth rate. But this target might be difficult to achieve. One of the main reasons is that today, low-carbon hydrogen is not competitive – and even more uncompetitive than previously predicted. After a period of great enthusiasm for the sector, there has been an air pocket in 2023. In France, for example, only 17MW of electrolyzer capacity has been installed in 2023 – and only 300MW of projects are confirmed financially which corresponds to 5% of the 6.5GW target for 2030. Few projects are at the investment stage, and according to the IEA, only 4% of projects have entered the FID phase. Low-carbon hydrogen remains too expensive and uncompetitive compared with carbon-based hydrogen. There are several reasons for this: Difficulties in obtaining supplies of competitive low-carbon electricity, rising interest rates, and difficulties in finding partners particularly EPC partners. So, what can be done to bring down the cost of hydrogen and make it a real vector of energy transition? While several levers have already been used to reduce the cost of investing in and using low-carbon hydrogen, many can still be mobilized by players throughout their value chains (equipment developers and producers in particular). These levers include: Digital, financial engineering, decarbonized electricity purchasing strategies, and partnerships, etc. In order to assess the ability and difficulties of players to mobilize them, we surveyed nearly 120 companies from the hydrogen sector all over the world. #greenhydrogen #energy #energia #energie #hydrogeneurope #nh3 #industrialclusters #energytransition #sdgs2030 #europeancommission #energialimpia #esg #hidrogenoverde #afrique #cleanenergy #industria #unido #decarbonization #emissionsreduction #electrolysis #electrolyzer #electrolyser #pem #soec #ev #fcev #bev #soe #aem #cathode #anode #h2 #oxygen #greenelectricity #idrogenoverde #hydrogènevert #hydrogenenergy #hydrogenstrategy #hidrogenioverde #hidrogenoverde #hidrógeno #hidrogenio #wasserstoff #onshorewind #solarenergy #hydroenergy #ifc #afc #H2Med #irena #h2lligence #decarbonize #renewableenergy #iea #sfe #emethanol #hydrogènevert #hydrogène #windenergie #hydrogenenergy #hydrogenfuel #hidrogenoverde #hidrógeno #hidrogenioverde #idrogenoverde #idrogeno #hidrojen #windpower #windenergy #hydrogenfuelcell #giz #ifc #iea #ebrd #eib #waterstof #greenfuel #greenammonia #ebrd  Osama Fawzy Georgy HENEIN,

//Leadership Imperatives Maximizing hydrogen's potential within the framework of the net-zero economy necessitates proactive engagement from leaders across governmental and corporate spheres. This imperative underscores the need for concerted efforts in three primary domains: 1. Stimulating Demand: Leaders can facilitate the proliferation of hydrogen by fostering a conducive environment for its adoption. Companies can spearhead industry-wide transitions by committing to sustainable practices, while policymakers can bolster this endeavor through the implementation of supportive measures. Such measures may encompass direct financial assistance and the establishment of regulatory frameworks mandating the integration of hydrogen into energy portfolios. 2. Developing Infrastructure: The establishment of robust infrastructure is pivotal for the widespread dissemination of hydrogen-based solutions. Substantial upfront investments are indispensable for the creation of an extensive network comprising pipelines and refueling stations. By prioritizing the development of such infrastructure, leaders can accelerate the integration of hydrogen into existing energy systems, thereby catalyzing its broader acceptance. 3. Scaling Up Production: To realize the full potential of hydrogen as a cornerstone of the energy transition, a substantial escalation in production capacity is imperative. This necessitates a twofold approach involving the expansion of electrolysis facilities to generate clean hydrogen at scale and the concurrent augmentation of renewable energy capacity to power these operations sustainably. Additionally, investments in carbon capture, utilization, and storage infrastructure are indispensable for mitigating emissions associated with hydrogen production. Leaders must recognize that expediting investments in gigascale production facilities is paramount for enhancing the cost competitiveness of hydrogen and expediting its integration into the energy landscape. In essence, the pivotal role of hydrogen in the energy transition hinges upon the concerted efforts of leaders to facilitate its widespread adoption through strategic interventions in demand stimulation, infrastructure development, and production scalability. Thus, prioritizing these actions in the ensuing decade is imperative for realizing the transformative potential of hydrogen within the context of a net-zero economy. #GreenHydrogen #CleanEnergy