C-MACC Hydrogen Weekly Update 10
- We look again at prioritizing the use of hydrogen this week and focus on shipping as the industry is effectively split between methanol and ammonia, both of which need abundant clean hydrogen.
- Near-term global market dynamics have depressed ammonia and methanol pricing, and this has influenced investment progress as current economics play a large part in investment decisions.
- But the recent turn in ammonia pricing may be a trend that would get investors interested again. Current prices are below what would be needed to get green ammonia moving, but maybe not blue.
- Methanol is more of a challenge as you need a source of CO2; ideally an existing one to get the clean label when using green or blue hydrogen; the cost of the CO2 may matter more than methanol pricing.
- Of course, the other option is to find customers willing to pay more – and we note a recent LinkedIn post from the LSB CEO making the same point last week. Anything can get done if the price is right.
Upcoming session led by C-MACC at the World Chemical Forum – September 12-14.