{"id":337020,"date":"2024-07-20T09:04:53","date_gmt":"2024-07-20T07:04:53","guid":{"rendered":"https:\/\/climatescience.press\/?p=337020"},"modified":"2024-07-20T09:04:55","modified_gmt":"2024-07-20T07:04:55","slug":"how-the-wests-absurd-bet-on-hydrogen-imploded","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=337020","title":{"rendered":"How the West\u2019s \u2018absurd\u2019 bet on hydrogen imploded"},"content":{"rendered":"\n
\"\"
Hydrogen Storage In Renewable Energy<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Hopes of a seamless transition to the clean fuel are crashing into economic reality<\/em><\/strong><\/p>\n\n\n\n

Andrew \u201cTwiggy\u201d Forrest has been on something of a journey in recent years.<\/p>\n\n\n\n

The Australian billionaire, best known for making his fortune in mining, underwent a Damascene conversion on climate change after having a near-death experience in 2016.<\/p>\n\n\n\n

Since then Forrest has vowed to turn his industrial empire, Fortescue, into a green energy beacon \u2013 chiefly by making big bets on green hydrogen. The Telegraph<\/a> has the story.<\/p>\n\n\n\n

But on Wednesday the businessman was forced to press pause on the dream as it crashed into economic reality.<\/p>\n\n\n\n

Fortescue, which still makes most of its money from mining iron ore, is now slowing work on green hydrogen projects and has dropped a target to produce 15m tons by 2030, blaming high costs and weak demand. <\/p>\n\n\n\n

It is the latest sign of a wobble over hydrogen, a so-called superfuel that has been championed as a solution to decarbonise everything from transport and heavy industry to home heating and power generation.<\/p>\n\n\n\n

Across the West, politicians have pledged to meet ambitious climate targets partly through developing different sources of the fuel, such as \u201cblue\u201d hydrogen made from natural gas, and \u201cgreen\u201d hydrogen derived through electrolysis of water.<\/p>\n\n\n\n

Collectively, they have pledged to produce millions of tonnes of hydrogen<\/a> in the coming decades \u2013 despite there being no proven path to doing so commercially.<\/p>\n\n\n\n

On the same day that Forrest pulled back, the European Union was told that its plan to make and import 10m metric tons of green hydrogen by the end of this decade was unrealistic as well \u2013 despite the bloc making \u20ac18.8bn (\u00a315.8bn) available for a slew of projects.<\/p>\n\n\n\n

The European Court of Auditors dismissed the target as one based on \u201cpolitical will\u201d rather than concrete data, and said it had been partly spurred on by lobbyists.<\/p>\n\n\n\n

While Brussels wants to have 40 gigawatts (Gw) of electrolyser capacity by 2030, it is only on track to add 5Gw at the moment, according to the court.<\/p>\n\n\n\n

Meanwhile, hydrogen heating trials have been cancelled in the UK<\/a> owing to a lack of supply, while France\u2019s Engie and Norway\u2019s Statkraft have delayed green hydrogen production plans.<\/p>\n\n\n\n

Michael Liebreich, an independent energy consultant who recently called for a \u201creset\u201d of expectations for hydrogen, warns that the industry is suffering from \u201cmissing trillions\u201d.<\/p>\n\n\n\n

\u201cThe underlying problem is that while all these hopes and dreams for hydrogen have been peddled, the economics just do not stack up,\u201d he says.<\/p>\n\n\n\n

\u201cFrom an engineering perspective, you can do all the things that everyone is talking about \u2013 every single thing.<\/p>\n\n\n\n

\u201cThe problem is, you can\u2019t pay for it. And the amount that is missing is not a small amount. It turns very quickly into trillions of dollars that are simply not there.\u201d<\/p>\n\n\n\n

Politicians including Boris Johnson have previously praised hydrogen as a potential like-for-like replacement for natural gas because it emits no carbon dioxide when burned.<\/p>\n\n\n\n

The idea has obvious appeal: why dig up our natural gas pipelines and throw out our boilers and gas stoves, replacing them with wind farms and expensive electric heat pumps, if we can just pump hydrogen through the existing gas network instead?<\/p>\n\n\n\n

But the reality has proved more complicated than this, says Liebreich.<\/p>\n\n\n\n

The first issue is simple physics: converting other things into hydrogen is energy-intensive and means the final product, by definition, ends up being more expensive than the things you used to make it.<\/p>\n\n\n\n

This means it is costly to make. And producing hydrogen in very large quantities would mean building more wind turbines, solar farms and electricity pylons to power the necessary electrolysers, on top of those you need for generating power \u2013 at a cost of many hundreds of billions of pounds.<\/p>\n\n\n\n

For this reason, Greg Jackson, the boss of Octopus Energy, a proponent of heat pumps, has compared using hydrogen for home heating to \u201cflushing the toilet with champagne\u201d.<\/p>\n\n\n\n

Hydrogen is also highly explosive and more leaky than natural gas \u2013 making its transportation difficult and expensive.<\/p>\n\n\n\n

\u201cEngineers can solve some of these problems, and at the end of the day we do lots of inefficient things already \u2013 an internal combustion engine in a car is only 20pc efficient,\u201d says Liebreich.<\/p>\n\n\n\n

\u201cBut the physics of hydrogen has cost implications right the way throughout the chain. It hits you in the production, it hits you in the transportation, it hits you in the storage and then it also hits you in the usage of hydrogen because it is bulky and dangerous.\u201d<\/p>\n\n\n\n

At the moment, the case for subsidising green hydrogen in many countries rests on a hope that costs can eventually be driven down to $1 (77p) per kilogram.<\/p>\n\n\n\n

This is the goal of subsidies of up to $3 per kilogram lavished on energy companies by Joe Biden\u2019s Inflation Reduction Act in the US.<\/p>\n\n\n\n

But because of its physical limitations, there is no certainty prices will ever reach this ultimate goal, Liebreich has argued, with developers needing to spread their costs out over 10 to 15 years. And even if it comes down to $2 per kilogram, that still leaves huge unaddressed costs when scaled up to tens of millions of tons.<\/p>\n\n\n\n

In the UK, the Government announced \u00a32bn worth of subsidies for 11 projects last year with a total capacity of 125 megawatts and an average strike price of \u00a3241 per megawatt hour.<\/p>\n\n\n\n

Hinkley Point C, the 3.3Gw nuclear power plant being built in Somerset, received a strike price of \u00a392.50 per megawatt hour. <\/p>\n\n\n\n

\u201cPeople say there\u2019s an experience curve,\u201d Liebreich says. \u201cThat argument absolutely applies to the electrolysers, which will probably get very cheap \u2026 but [the majority of the cost comes from] the electricity and compressors, and pumps, and tanks, and heat exchangers, and substations \u2013 all that basic engineering.\u201d<\/p>\n\n\n\n

Read the full story here<\/a>.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Hopes of a seamless transition to the clean fuel are crashing into economic reality<\/p>\n","protected":false},"author":121246920,"featured_media":337024,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691819627,691818370,691818154,691819094],"class_list":{"0":"post-337020","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-clean-energy","9":"tag-hydrogen","10":"tag-net-zero","11":"tag-renewable-green-energy","13":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Hydrogen-main-image-iStock-1277374491-1920x1280-1.jpg?fit=1920%2C1280&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1pFO","jetpack-related-posts":[{"id":405888,"url":"https:\/\/climatescience.press\/?p=405888","url_meta":{"origin":337020,"position":0},"title":"Jilted Aussie Green Hydrogen Investor Accuses President Trump of Lying","author":"uwe.roland.gross","date":"30\/09\/2025","format":false,"excerpt":"\u201c\u2026 \u00a0wrote off $244 million in clean energy spending\u00a0\u2026\u201d after Trump 2024 Election win.","rel":"","context":"In \"Andrew Forrest\"","block_context":{"text":"Andrew Forrest","link":"https:\/\/climatescience.press\/?tag=andrew-forrest"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgQ4ANaOyoTBngNHUlxGbKjDsA7aTci-uoeKbhI-RX51Lo8gGQnCCxNTnIumTOmfmvTV2E-uCfjfYkBRRJ73UfnHNPo0C7jd1rCllwj0WigJZEpKPculBExFOfgi46-1.jpeg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgQ4ANaOyoTBngNHUlxGbKjDsA7aTci-uoeKbhI-RX51Lo8gGQnCCxNTnIumTOmfmvTV2E-uCfjfYkBRRJ73UfnHNPo0C7jd1rCllwj0WigJZEpKPculBExFOfgi46-1.jpeg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgQ4ANaOyoTBngNHUlxGbKjDsA7aTci-uoeKbhI-RX51Lo8gGQnCCxNTnIumTOmfmvTV2E-uCfjfYkBRRJ73UfnHNPo0C7jd1rCllwj0WigJZEpKPculBExFOfgi46-1.jpeg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgQ4ANaOyoTBngNHUlxGbKjDsA7aTci-uoeKbhI-RX51Lo8gGQnCCxNTnIumTOmfmvTV2E-uCfjfYkBRRJ73UfnHNPo0C7jd1rCllwj0WigJZEpKPculBExFOfgi46-1.jpeg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQMgQ4ANaOyoTBngNHUlxGbKjDsA7aTci-uoeKbhI-RX51Lo8gGQnCCxNTnIumTOmfmvTV2E-uCfjfYkBRRJ73UfnHNPo0C7jd1rCllwj0WigJZEpKPculBExFOfgi46-1.jpeg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":209088,"url":"https:\/\/climatescience.press\/?p=209088","url_meta":{"origin":337020,"position":1},"title":"The Utopian Vision Driving Green Energy Enthusiasts","author":"uwe.roland.gross","date":"18\/07\/2022","format":false,"excerpt":"Essay by Eric Worrall A glorious vision of green steel, green cement, green fertiliser, green hydrogen and a green energy export business. 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Albanese just laid out a radical new vision for Australia in the region: clean energy exporter and green\u00a0manufacturerJohn Mathews\u00a0Professor Emeritus,\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-142.png?fit=750%2C495&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-142.png?fit=750%2C495&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-142.png?fit=750%2C495&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-142.png?fit=750%2C495&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":278817,"url":"https:\/\/climatescience.press\/?p=278817","url_meta":{"origin":337020,"position":2},"title":"\u2018Green\u2019 Hydrogen Hoax Implodes: The Economics Simply Don\u2019t Stack\u00a0Up","author":"uwe.roland.gross","date":"15\/09\/2023","format":false,"excerpt":"The wind and solar scammers raking in massive subsidies have been joined by the \u2018hydrogen huckster\u2019, just as eager to exploit an opportunity when he sees one; an opportunity to gouge untold $billions from taxpayers. 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No amount of government handouts can make this ridiculously uneconomic fantasy work.","rel":"","context":"In \"biofuels\"","block_context":{"text":"biofuels","link":"https:\/\/climatescience.press\/?tag=biofuels"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0WordPress-Plumptre.jpg?fit=1200%2C420&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0WordPress-Plumptre.jpg?fit=1200%2C420&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0WordPress-Plumptre.jpg?fit=1200%2C420&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0WordPress-Plumptre.jpg?fit=1200%2C420&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0WordPress-Plumptre.jpg?fit=1200%2C420&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":337359,"url":"https:\/\/climatescience.press\/?p=337359","url_meta":{"origin":337020,"position":5},"title":"The Energy Transition Ain\u2019t Happening: Hydrogen in Australia","author":"uwe.roland.gross","date":"23\/07\/2024","format":false,"excerpt":"These days, there is lots and lots of news about how the supposed \u201cenergy transition\u201d is not happening. 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