Hydrogen Economy

The Biden $1 per KG Hydrogen Target, Causing More Problems Than It Solves
May 21, 2024
This Week:
Funding Electrolyzers Because Expectations May Be Unrealistic
Next Week:
Feedback from the hydrogen conference – see below

The Hydrogen Economy #47

The Biden $1 per KG Hydrogen Target, Causing More Problems Than It Solves

Key Points

  • The enthusiasm behind cheaper green hydrogen relatively quickly shows the Biden Administration’s ambition, but it may drive its failure because of electrolyzer overinvestment and overall project delays.  
  • Overinvestment in electrolyzer capacity, supported by grants and tax incentives, will leave too many companies chasing too little business – few will get economies of scale, and many will likely fail as cash runs out.
  • As potential hydrogen users see lower cost projections from the Administration, they are reluctant to support current projects with long enough take or pay contracts for the projects to get funding; this slows progress.
  • Graham Copley will attend the World Hydrogen North Americas conference in Houston this week to represent Issaquena Green Power and discuss C-MACC work in hydrogen and associated industries. 

Exhibit 1: This chart shows IRENA estimated green hydrogen cost reductions to create cost parity with grey hydrogen and areas where costs need to fall – we view the largest two areas in the exhibit as being the most at-risk.

Source: Electric Hydrogen – Based on IRENA analysis



Client Login

Learn About Our Subscriptions and Request a Trial

Contact us to gain full access and experience our services!

Request a Free Trial

Archives

Hydrogen Service

This report is accessible with a hydrogen service subscription and included in our full subscription service.

Sign-up below to participate in a trial to receive the hydrogen weekly reports and explore the best way to partner with us!

The C-MACC Way

Our subscription model is integrated with consulting time,
making it the most well-rounded comprehensive
market analysis consulting service in the covered sectors.