If Only We Had Cheap Power – The CCUS Properties of Hydrogen.

Key Points

Like transport, there are pockets of hydrogen opportunities associated with CO2 use that might make economic sense where carbon disposal costs are high and local curtailed power can deliver cheap hydrogen.
The power is not there for scale applications and by the time there is sufficient power most of those with hard carbon abatement problems will have taken a different path. This is likely opportunistic and small-scale.
Again, we have an idea that could drive hydrogen production but does not drive hydrogen scale – and our concerns remain that all those building capacity for electrolyzers have demand projections that are too high.
We see project momentum behind blue hydrogen, and all the green initiatives are either small or expensive. Spreading limited electrolyzer demand among too many players means scale is years away – post consolidation.
While power is the primary constraint to faster green hydrogen investment, in the US the constraint is the power grid, as there are enough projects on the sidelines waiting for connections before construction starts.

Exhibit 1: Most are focused on sequestration because direct use is limited and everything else needs hydrogen