Hydrogen Economy Update

C-MACC Hydrogen Weekly Update 14

RED III – A Boost for Hydrogen – A Financial and Social Risk for the EU

• Weekly Theme: A European Boost For Hydrogen?
• News Update
• Projects Update
• Ammonia/Methanol Update
• Power Update
• Next Week: Green China

Key Points

• The RED III proposal in Europe – soon to be signed into law – will likely result in a wave of green hydrogen announcements, but nothing will be cheap, and persistently high power costs remain a risk.
• More concerning is the overall lack of practical realism in the plan, and as countries realize that meeting the goals will cause significant economic harm, it could push populism and harm the EU itself.
• Transport targets will drive green hydrogen needs, but high prices and limited availability could be another significant nail in the European industrial coffin; more production/jobs will move offshore.
• Trying to decarbonize without CCS is a major tactical and competitive error from the EU in our view, handing more competitive advantage to North America, the Middle East, and closer to home, the UK.
• Otherwise, we look at why blue may dominate international ammonia fuel markets, what would need to happen for Mississippi to become a hydrogen hub, and continued competitive progress in China.