C-MACC Hydrogen Weekly Update 17
- Weekly Theme: Pockets of Demand
- News Update
- Projects Update
- Ammonia/Methanol Update
- Power Update
- Next Week: Electrolyzer Makers
- Outside of power/fuel applications, demand for clean hydrogen is limited by an unwillingness to pay more than grey alternatives, and even within the fuel space, the focus is on low-cost blue projects.
- Those who can pay do not want much, and only producing enough to meet higher-priced demand without flooding the market will be challenging, especially if the volumes are minimal.
- Initiatives in Europe, especially in Spain and Portugal, not only require power prices that may reflect cost but do not reflect local pricing, but they also require more price-insensitive demand than is likely.
- None of our clients is suggesting that they have significant pockets of demand to support a meaningful hydrogen premium. Higher capital costs (interest rates) will slow announced projects.