MUST is a strong word “EU hydrogen plans must be supported by subsidies, regulations- energy execs say” Ambiguity in the word “must” here— Mild interpretation: without subsidies, there will not be green hydrogen production. (This is a simple statement of fact, and should not be controversial). Strong interpretation: it is imperative to produce green hydrogen. (This is a complex statement requiring many assumptions and a long, convoluted and vulnerable chain of logic. As such, it is highly controversial). Quote after quote below indicates that without subsidies, there is no green H2. ‘Blue’-label hydrogen will always be more expensive than natural gas. ‘Green’-label hydrogen will always be more expensive than ‘blue’-label hydrogen. Basic physics, chemistry, mathematics, engineering and economics tells us this. Those things won’t change. More hydrogen: more subsidies. Is this sustainable? What is not mentioned below is that ‘green’-label hydrogen will always be more expensive than ‘pink’-label hydrogen (made using nuclear energy). In a comment below and discussion with Kathryn Porter, Morten Frisch links this problem with the question in my article from last year: https://lnkd.in/gavpw4PP #green #label #hydrogen #subsidies
Second day of Flame-conference #flameconf EU hydrogen plans must be supported by subsidies, regulations- energy execs say AMSTERDAM, April 24 (Reuters) - European governments will need to offer energy companies subsidies and regulatory support to produce renewable #hydrogen to make the transition to clean fuels from fossil fuels, senior energy executives said on Wednesday. Executives from firms including Norway's Equinor (EQNR.OL), opens new tab and Germany's Uniper (UN0k.DE), opens new tab said at the Europe Flame Gas and LNG Conference in Amsterdam that without government support it will be hard for companies to fully take on the mission to produce hydrogen, which is four-to-ten times more expensive than natural gas. WHY IT'S IMPORTANT The European Union aims to produce 10 million metric tons and import 10 million tons of renewable hydrogen by 2030 as the bloc moves to cut carbon emissions. A wholesale move to hydrogen will need significant new demand, which could only come with investments in infrastructure to reduce the cost. KEY QUOTES - Helge Haugane, senior vice president, gas and power at Equinor "Blue hydrogen is going to be more expensive than gas … and it’s going to be more expensive if you go to green hydrogen." "That is why we as companies argue that we need targeted subsidies and support to be able to lift this." - Carsten Poppinga, chief commercial officer at Uniper "Delivering on the energy transition cannot be paid by the market. Hydrogen is the source of energy which is four-to-10 times more expensive than natural gas, the market is not gonna deliver on that on its own." "If you really want to do that, transforming the markets in terms of sourcing of energy, it will require quite some governmental intervention in the form of subsidies and regulation." -Kathryn Porter , independent energy consultant: "It's going to be almost impossible to deliver the energy transition using normal market frameworks...this isn't a transition that you can make gradually it's going to have to be all or nothing." From the session ***Are the frogs at risk? **** During the session, Equinor’s Helge Haugane had a very interesting analogy, symbolising the risk in the gas industry, to having frogs falling into a pan of water, with the water gradually heating up, and eventually not get involved in jumping out will make them actually die. “Are the frogs going to be able to sit there or is it getting hotter?” Are there major risks to gas market between now and 2040?! Kathryn had an interesting opinion which I think many would agree with: The frogs “are enjoying a lovely bath at the moment and are not in mortal danger” “The outlook for gas is very positive and the risk is probably more in light of not having enough”
Morten Frisch
2mo
Stephen Wilson With the exception of France, "pink"-label hydrogen meaning hydrogen made using nuclear energy is a tabue hydrogen solution in many European countries and specially in Germany. This is unfortunately the case although the use of hydrogen produced using nuclear power as an energy source in thight energy clusters is likely to be a future solution for the decarbonisation of industries such as steel, cement, chemicals etc. France with its large fleet of nuclear power plants has tried to promote energy clusters based on hydrogen being produced using nuclear power.
Morten Frisch
2mo
Stephen Wilson you make a reference to my exchange of comments with Kathryn Porter on 25 April 2024. Kathryn is a speaker at the large natural gas and LNG Flame-conference currently taking place in Amsterdam. To make it easier for readers to access, my comments to Kathryn were: "Do the Flame-conference speakers and/or audience recognise the fact a number of European NATO members already have adopted a "war footing" due to the increasingly grave geopolitical situation in Europe? As examples, this is the case here in the UK, at home in Norway, in Poland and in the Baltic states. The German Chancellor Olaf Scholz is also on-board. Macron is talking very boldly, but he has not yet loosened the French purse strings for Ukraine."; and "Kathryn that is also my take on the rapidly developing geopolitical situation. Furthermore, in my opinion money earmarked for green subsidies will be easy to instead spend on the military. The wind, solar, CCS and hydrogen "subsidy collectors" may end up going empty handed. Stephen Wilson's Ponzi scheme development for investors in new subsidised "green" projects may come earlier than first thought! Just some thoughts for this evening's discussions over drinks at the Okura hotel in Amsterdam."
Brett Stevenson
2mo
Great insights Stephen Wilson. It’s also worth noting that the loudest voice calling for ‘hydrogen subsidies’ is one of Australia’s richest people - Twiggy Forrest. And who will be the beneficiary of those subsidies? Well that rhetorical question.
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2moFew applications will run on hydrogen. Therefore the European 🇪🇺 #hydrogen strategy is not going to fly and will end in subsidised operations until the #subsidies run out. Paul Martin does an excellent job in myth busting ... https://open.spotify.com/episode/68Wdxlv8zOrsTLqODlnP24?si=jYqVHxvvQ7GBJ3WEYAJ-DA