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hydrogen

CIC and Montana Technologies Partner on Hydrogen Production

Anela DoksoBy Anela Dokso14/08/20242 Mins Read
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Climate Impact Corporation (CIC) recently announced a Memorandum of Understanding (MOU) with Montana Technologies Corporation to collaborate on the development of CIC’s renewable hydrogen production modules.

This partnership aims to leverage Montana Technologies’ AirJoule atmospheric water generators to support CIC’s ambitious goal of producing renewable hydrogen in remote, sun-drenched regions like central Australia. While the announcement is promising, it warrants a closer examination, particularly regarding the feasibility and impact of these technologies.

CIC’s hydrogen production units are designed to operate entirely off-grid, combining solar panels, atmospheric water generators, electrolysers, and supporting infrastructure. The integration of Montana Technologies’ AirJoule system, which extracts water from the atmosphere, is touted as a game-changer that could allow hydrogen production in arid environments. However, the practical challenges of producing hydrogen in such remote locations should not be underestimated.

Producing hydrogen at scale requires significant amounts of water and energy, even in optimal conditions. While AirJoule technology may offer a novel solution, its efficiency and reliability in harsh desert environments remain unproven. Moreover, the ability to maintain continuous hydrogen production in regions with fluctuating solar exposure could be a significant hurdle.

CIC has set a bold target of achieving a production cost of USD $2 per kilogram for renewable hydrogen, a benchmark that would place them at the forefront of the global hydrogen market. However, achieving this cost target is contingent on several factors, including technological efficiency, economies of scale, and the integration of advanced R&D from partners like GE Vernova. While these partnerships are a step in the right direction, they do not guarantee success.

Historically, the hydrogen industry has struggled to bring down production costs to competitive levels. The $2 per kilogram goal, while laudable, may be overly optimistic given current technology and market conditions. It is crucial to compare this target with industry benchmarks, where even leading producers are finding it challenging to achieve such low costs without substantial subsidies or technological breakthroughs.

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