C-MACC Hydrogen Weekly Update 12
Panel Takeaways – Hope but Not Enough Cash
- Weekly Theme: Panel Takeaways – Hope but Not Enough Cash
- News Update
- Projects Update
- Ammonia/Methanol Update
- Power Update
- Next Week: The Incremental Alternative
Key Points:
- Our well-attended panel at WCF last week focused on the implementation challenges around moving to larger volume hydrogen production and reflected other sustainability challenges raised last week.
- Globally, we have a cost and willingness to pay issue, and this is for hydrogen, renewable materials, and recycled materials. Everyone wants something low-carbon but doesn’t want to pay.
- Pricing support exists – Gevo mentioned that large brand owners were willing to pay more for flights with SAF – but the support is in relatively small pockets – you can sell a few tons but not thousands.
- We note the number of clean ammonia projects waiting for CCS permits in the US, and we understand that others are pending elsewhere – but note that methanol has an early lead in shipping fuels.
- However, the blue ammonia converts will be watching the chart below with interest as pricing is recovering. While it is not yet high enough to justify US investments, the direction is encouraging.