Hydrogen Economy

If Hydrogen is Expensive, The Creativity To Source Supply From Existing Resources Must Rise
March 6, 2024
This Week:
Gasification and pyrolysis look more interesting if hydrogen prices stay high.
Next Week:
Is US Blue Ammonia Bankable? It Should Be

The Hydrogen Economy #36

If Hydrogen is Expensive, The Creativity To Source Supply From Existing Resources Must Rise

Key Points

  • As the idea that hydrogen will be neither cheap nor plentiful gains support, other routes to hydrogen look more interesting – especially pyrolysis and gasification (of many potential feeds).
  • Ethylene producers may find higher values in use for byproduct hydrogen than either selling into a grid or burning to reduce furnace carbon footprint – especially in the US where you are not penalized for emissions.
  • The ammonia market is weakening internationally on the back of ample supply and falling international natural gas prices. In the US the prices are more stable, but low local natural gas prices may drive downside. 
  • Otherwise, we show a short list of projects this week, all of which will need premium pricing but some of which (the smaller projects) may find it. 

Exhibit 1: The trick will be to find low-cost ways to access the lower-concentration hydrogen, but some inputs are cheap.

Source: C-MACC Analysis



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