{"id":259849,"date":"2023-05-31T12:52:26","date_gmt":"2023-05-31T10:52:26","guid":{"rendered":"https:\/\/climatescience.press\/?p=259849"},"modified":"2023-05-31T12:52:29","modified_gmt":"2023-05-31T10:52:29","slug":"is-green-hydrogen-being-overhyped","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=259849","title":{"rendered":"Is Green Hydrogen Being Overhyped?\u00a0"},"content":{"rendered":"\n
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From Tallbloke’s Talkshop<\/a><\/p>\n\n\n\n

May 27, 2023 by\u00a0oldbrew<\/strong>\u00a0<\/p>\n\n\n\n

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Credit: Scottish Power<\/p>\n\n\n\n

Plenty of talk but not very much action, it seems. The author notes that \u2018the small size of hydrogen molecules poses safety and greenhouse gas-related risks that must be mitigated\u2019, while most current gas grids can\u2019t cope with more than 20% hydrogen content anyway. Affordability looks at least questionable. Such issues will require years of effort and expense to even attempt to get to grips with.<\/em>
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The global discourse on addressing climate change, energy transition, and investments is currently dominated by the topic of green hydrogen, says Dr. Cyril Widdershoven @ OilPrice.com<\/a>.<\/em><\/p>\n\n\n\n

The media frenzy surrounding the expanding array of projects, subsidy schemes, and international strategies is fueled by the influence of Washington\u2019s IRA plans and the EU\u2019s energy strategic projects.<\/p>\n\n\n\n

It appears as if the choice for a post-hydrocarbon world has already been made, with green hydrogen or its derivative, green ammonia, emerging as the favored options. Western parties remain highly optimistic, as large-scale renewable energy initiatives are closely tied to these alternatives.<\/p>\n\n\n\n

However, it is crucial to bring realism into the discussion. This aspect should be addressed sooner rather than later.<\/p>\n\n\n\n

During the Qatar Economic Forum in Doha, Saudi Ministry of Energy Abdulaziz bin Salman highlighted the skepticism, stating, \u201cPeople talk about hydrogen as the fuel of the future\u2026 but who is going to be the offtaker?\u201d<\/p>\n\n\n\n

Abdulaziz bin Salman emphasized that hydrogen lacks a clear market price, which inhibits its development. He questioned the prevailing discussions on various types of hydrogen, such as blue, green, purple, or pink, by emphasizing the need for identified offtakers and clear policies in this regard.<\/p>\n\n\n\n

Amin Nasser, CEO of Saudi Aramco, previously stated that blue hydrogen costs $250 per barrel of oil equivalent (boe), which suggests that customers in the EU, Japan, or South Korea would not be willing to procure it at such prices.<\/p>\n\n\n\n

Additionally, Bloomberg reported that despite the exponential growth of the green hydrogen project list, investors remain unconvinced about financing them.<\/p>\n\n\n\n

Currently, there is a proliferation of hydrogen projects being proposed, but only a mere 7% of them have secured financing to commence construction. Bloomberg New Energy Finance has highlighted that this financing reality sharply contradicts the expectations set by the IRA and EU strategic plans.<\/p>\n\n\n\n

Financial institutions remain highly skeptical about the feasibility of economically and affordably producing large volumes of green hydrogen.<\/p>\n\n\n\n

According to some industry insiders who spoke to Bloomberg, while there are numerous project announcements, very few are actually being realized on the ground.<\/p>\n\n\n\n

Full article here<\/a>.<\/em><\/p>\n\n\n\n