BARCELONA (ICIS)--Chemical producers in Europe could see the cost of zero or low carbon hydrogen equal that of current production technologies as investment costs fall and carbon pricing increases.
- Green hydrogen $3.50/kg in Europe but falling technology costs could equalise blue, green, grey by 2030
- Huge cost, technology, infrastructure challenges must be overcome
- Massive infrastructure investment needed for hydrogen pipelines, ammonia conversion
- Funding the investment required will be a big challenge
- Chemical companies partner with energy groups for green electrolysis
- In chemicals hydrogen mainly used globally for ammonia (30m tonnes/year), methanol (12m tonnes/year)
- Ammonia, methanol emit 670m tonnes/year of carbon dioxide
- Need to convert these sectors to low carbon hydrogen
- Oil refining uses 35m tonnes/year of hydrogen
- Heavy road transport, shipping could switch to hydrogen
- Sceptics suggest hydrogen should be kept for niches where electrification is not feasible
Will Beacham interviews Simon Ellis, lead global gas analyst for ICIS, Nigel Davis, ICIS Insight editor and John Richardson, ICIS senior consultant Asia.
Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.
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