Marty Neese, CEO of Californian electrolyser start-up Verdagy, has spoken out in an exclusive interview with H2 View, calling for a new approach towards hydrogen industry supply chains.
Neese believes that the industry needs to move away from the supply chain pathways that have traditionally been used in the energy sector and instead create sustainable, localised supply capabilities to support the long-term energy transition.
According to Neese, using the same supply chain pathways as the energy industry has done for the last 25 years, where low cost is the only thing that matters, will hollow out the industry and cause it to miss the opportunity to create more sustainable solutions. Instead, Neese suggests that a thoughtful combination of global and local suppliers, along with good policy support, will allow for a balanced approach to the supply chain and ultimately lead to a more sustainable industry.
Verdagy is known for its novel electrochemical cell that provides significant cost reductions in the production of green hydrogen. The company is looking to take advantage of recent policy support in the US, Europe, and Canada, such as the Inflation Reduction Act (IRA), the European Hydrogen Bank, and Hydrogen Investment Tax Credit, respectively.
Neese also stressed the importance of political stability in the long-term to allow hydrogen supporting legislation to have time to develop. For example, he expressed the hope that the US government will stick with the Inflation Reduction Act and Bipartisan Infrastructure Law for longer than one congressional cycle to allow the policies to take root and create a new hydrogen market.
As the hydrogen industry continues to develop, it will be essential to adopt new approaches to supply chains to ensure that the industry remains sustainable and creates a positive impact. Verdagy’s innovative electrochemical cell and Neese’s vision for a more sustainable hydrogen supply chain may be key to achieving these goals.
