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hydrogen

CIC and Purus Forge Net-Zero Hydrogen Supply Chain Amid Cost Challenges

Arnes BiogradlijaBy Arnes Biogradlija12/03/20252 Mins Read
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The push for truly net-zero hydrogen fuels has intensified with the announcement of a memorandum of understanding (MOU) between Climate Impact Corporation (CIC) and Purus Marine. The agreement, disclosed on 11 March 2025, aims to integrate low-carbon shipping into CIC’s renewable hydrogen supply, ensuring that transport emissions are fully accounted for—a critical gap in current hydrogen certification frameworks.

CIC’s approach hinges on modular hydrogen production, with two 10GW projects underway in Australia to meet growing demand in the Asia-Pacific and Europe. By leveraging Purus Marine’s low-carbon shipping solutions, the partnership seeks to deliver renewable hydrogen at net-zero emissions when including carbon offsetting. However, whether such offset-based claims align with emerging regulatory standards remains an open question, as policymakers increasingly scrutinize the validity of offsets in decarbonization strategies.

One of the key industry challenges is maintaining cost competitiveness. CIC Chairman David Green emphasized that the company is targeting a production cost of USD 2/kg for renewable hydrogen—widely regarded as a crucial price point for commercial viability. Achieving this while integrating low-emission transport solutions presents a logistical and economic challenge. Historically, the cost of hydrogen transport—particularly for liquefied or ammonia-based shipping—has posed a significant barrier to affordability. While Purus Marine’s innovation in sustainable shipping is positioned as a solution, whether it can meaningfully offset these transport costs without relying heavily on subsidies or policy incentives will be a decisive factor in the project’s success.

Beyond cost, the industry has long debated what constitutes “truly green” hydrogen. CIC’s assertion that other producers fail to factor in transport emissions highlights the broader issue of supply chain transparency in hydrogen certification. As regulatory bodies move toward more stringent life-cycle emissions accounting, partnerships like this one could set a precedent—provided they meet evolving global standards for emissions tracking and reporting.

With CIC securing demand in major hydrogen-importing regions, the agreement with Purus Marine represents a strategic effort to address a critical weak link in the hydrogen value chain. However, the scalability and long-term economic viability of this approach will depend on how effectively both companies can balance environmental claims with the hard realities of cost, infrastructure, and regulatory scrutiny.

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