Hydrogen Economy

Hydrogen For Transport – Some Early Opportunities But Unlikely to Drive Much Needed Scale
April 23, 2024
This Week:
Batch Hydrogen Lends Itself To Direct Use In Transport
Next Week:
Hydrogen for Carbon Capture

The Hydrogen Economy #43

Hydrogen For Transport – Some Early Opportunities But Unlikely to Drive Much Needed Scale

Key Points

  • The trucks and trains may end up being the most meaningful early adopters of green hydrogen as a fuel because there are only limited pockets of cheap power and this favors liquid fueling. Engine makers could win.
  • The economics of running large-scale ammonia or e-fuels from low-volume batch hydrogen will likely not work even with significant subsidies and blue projects are stalled because of permitting and financing.
  • Pockets of cheap/free wind and solar power are distributed and so lend themselves to supplying a transport focused grid – filling station for trucks – hub and spoke commercial operations and possibly trains (Europe).
  • Governments are spending to support hydrogen infrastructure, which may allow for development of systems that could work without undue inflation – the electrolyzer capital would be inefficient, but free power helps.
  • But lots of small hydrogen facilities will drive small orders for equipment, initially spread among too many electrolyzer suppliers; it will not solve capacity oversupply and likely will not see anyone gain scale benefits.

Exhibit 1: Westport Fuels looked interesting when natural gas engines looked good – and again for hydrogen.

Source: Capital IQ and C-MACC Analysis



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