Sustainability, Energy Transition, ESG | Weekly Thematic

Blue is the Color: For Near Term Scale in H2, Ammonia, Methanol
June 21, 2023
Companies Mentioned:
Air Products, ExxonMobil, Aramco, Air Liquide, Bloom Energy, Chart Industries, Aker Carbon Capture, ADNOC, Covestro, Borealis, BASF, LyondellBasell, Dow, Huntsman
Commodities Mentioned:
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing, Climate Litigation, Clean Fuels

C-MACC Weekly “CRETER” (Climate etc.)

Blue is the Color: For Near Term Scale in H2, Ammonia, Methanol

  • With the right incentives for CO2, blue hydrogen looks like a winner over green; harder if CO2 is expensive, but costly CO2 is often where power is also expensive.
  • In a few cases in the US, blue hydrogen could have lower cash costs than grey, but capital costs are high, while most grey capacity is fully depreciated.
  • While we see value in throwing challenges at the COP28 hosts, we see little to be gained in writing off the meeting before its start – the oil industry is relevant.
  • We see more evidence of either lower legacy product pricing and/or rising input costs challenging both the recycling industry and biofuels/materials this year.
  • Otherwise, we look at whether ADNOC could decarbonize Covestro and what that might mean for others – we also look a new renewable power subsidy.

See PDF below for all charts, tables and diagrams

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