Despite the fact that “blue” hydrogen is now cheaper than “green” hydrogen, the situation is expected to change by 2030.
Natural gas is used to produce blue hydrogen, which is backed up by carbon capture and storage (a technology that struggles to be economically viable). Green hydrogen is created using renewable energy and water. “BloombergNEF predicts that renewable hydrogen will be cheaper in all simulated nations by 2030, including those with cheap gas (like the United States) and expensive renewable electricity (like Japan and South Korea).”
Oil and gas firms want to earn a profit while simultaneously seeming to be environmentally conscious. They’re going into the blue hydrogen space, but if they don’t move rapidly enough, they’ll end up with stranded assets. By designating 2030 as the deadline, BNEF is raising the stakes. Can they construct a facility and have it pay for itself in less than eight years? Making it simple to change plants from blue to green, as technology (particularly electrolyzer prices) becomes more affordable, is, in my opinion, the wise thing to do.
“By 2030, even ‘grey’ hydrogen produced with fossil fuels without CCS might cost more than green hydrogen in 16 of the 28 nations studied by BNEF.” The hydrogen market will undergo a seismic change as a result of this.”
According to IRENA research, Australia is in the greatest position to profit from this change because of its enormous renewable energy supplies. Twiggy Forrest, who has billions of dollars to invest, is betting on it.
The world’s first tanker of liquefied grey hydrogen was delivered from Victoria to Japan just this week. The hydrogen was generated from liquefied brown coal, which was the worst sort of grey. Despite the collective gasp from the ecological conscience (including myself) as Angus Taylor wished the tanker well, we must recognize that this might be proof that we can carry hydrogen from any source. If the ship is able to continue its journey, there is some positive news.
As we advance toward a green economy, there are many difficulties to overcome, but with each one solved, the future looks more and more sustainable for Earth’s residents, and more and more profitable for industry captains.
