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