Two competing narratives about hydrogen played out the last two
years in the press. One was that hydrogen is being pitched by the
fossil fuel community as a way for natural gas to retain
longer-term relevance. The other is that hydrogen will be an
important part of the energy transition. The latter narrative
appears to have won.
The cost of electricity is the single largest operating cost for
producing green hydrogen. With electricity prices rising, the
economics have taken a step backwards. New tax credits in the
Inflation Reduction Act of up to $3 a kilogram for producing clean
hydrogen will help. Other important issues remain such as how to
move hydrogen and where to get scarce water. Nevertheless, a number
of start-up hydrogen companies are getting into the sector.
Projects are starting to advance.
A panel talked about the challenges and opportunities in…