Sustainability, Energy Transition, ESG | Weekly Thematic

Coal – The Cheapest Blue Hydrogen: Heresy Or Common-Sense?
December 22, 2021
Companies Mentioned:
Shell, Air Products, Danimer Scientific, Fulcrum Bioenergy, SK Capital, Venture Global, CNOOC
Commodities Mentioned:
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing

C-MACC Weekly “CRETER” (Climate etc.)

Coal – The Cheapest Blue Hydrogen: Heresy Or Common-Sense?

  • As the “Build Back Better” plan looks less likely in the US we would expect compromises that provide greater opportunities for “clean” US fossil fuel.
  • While the need for more LNG is glaringly apparent, we provide a compelling case for using abundant, low-cost US coal to produce cheap blue hydrogen.
  • Hydrogen is likely to be supply-constrained, and clean blue hydrogen from coal is possible relatively quickly and does not rely on unproven new technology.
  • The investor and litigation backlash from throwing support towards coal would likely be significant, and any lifeline would need stringent emission regulation.
  • Otherwise, we look at the aggressive chemical recycling push, carbon pricing, possible renewable power inflation in 2022, and the benefits of being nimble.

See PDF below for all charts 

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