The Hydrogen Economy #67
It’s About Money – Pricing Is Driving Cancellations, Not Demand: Demand Is There at the Right Price!
Key Points
- When we see companies canceling projects because “demand” is not there, they really mean that they cannot get the economics to work such that someone can afford the hydrogen, renewable fuel, or renewable material.
- Hydrogen demand would be unlimited today if the price were right, but getting the price right for clean hydrogen is a challenge unlikely to be fixed anytime soon. Power prices are rising, not falling, and far from free.
- While many at a DC conference this week could articulate how we all need to come together to save the planet, none of the ideas and “wishes” presented came with practical solutions – still, the dialogue was valuable.
- This week’s headlines are very tilted towards electrolyzers, demand, cancellations, and new capacity, adding to the challenges facing an industry looking for economies of scale.
Exhibit 1: We see clean power prices rising because supply cannot keep up with demand – data centers can pay more than hydrogen.
Source: Capital IQ and C-MACC Analysis
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