A recent World Economic Forum piece claims that the primary challenge in rapidly scaling climate solutions lies in a lack of confidence. I beg to differ.
3 comments / questions: (also referring to your original BEF article):
1. The EU ETS system should shift the incentive pattern somewhat - currently around 1 €/ kg H2 which according to some will rise gradually until mid 2030’s - and then drastically.
2. The ammonia shipping route seams to bevthe preferred for long distances. Do you have a number for the associated cost of synthezing and cracking ( I have seen number around 50% added due to losses.
3. Heat seams to be cheeper than steel in cost - but less efficient in CO2 emission reduction. That is scary because it will redirect subsidized hydrogen to less efficient use.
Yes - you nailed it. For commercial banks and major institutions to invest in hydrogen infrastructure- those $2-5/kg subsidies need to be in place for 10plus years. Other than the IRA tax breaks - I’m not seeing that anywhere except perhaps China (but that’s a bit opaque).
Chairman! We keep turning on both the hot and cold taps, thinking the water will get colder. There is definitely a lack of confidence in our ability to just phase out fossil fuels as an energy source. Trying to push off that decision to the markets has not been a success, as you note. Meanwhile the weather is more extreme, every year…
3 comments / questions: (also referring to your original BEF article):
1. The EU ETS system should shift the incentive pattern somewhat - currently around 1 €/ kg H2 which according to some will rise gradually until mid 2030’s - and then drastically.
2. The ammonia shipping route seams to bevthe preferred for long distances. Do you have a number for the associated cost of synthezing and cracking ( I have seen number around 50% added due to losses.
3. Heat seams to be cheeper than steel in cost - but less efficient in CO2 emission reduction. That is scary because it will redirect subsidized hydrogen to less efficient use.
Yes - you nailed it. For commercial banks and major institutions to invest in hydrogen infrastructure- those $2-5/kg subsidies need to be in place for 10plus years. Other than the IRA tax breaks - I’m not seeing that anywhere except perhaps China (but that’s a bit opaque).
Chairman! We keep turning on both the hot and cold taps, thinking the water will get colder. There is definitely a lack of confidence in our ability to just phase out fossil fuels as an energy source. Trying to push off that decision to the markets has not been a success, as you note. Meanwhile the weather is more extreme, every year…