Liebreich points out the economic impracticality of shipping green hydrogen over long distances; supports pipelines for the same purpose.
Here’s an article posted in Recharge News.
According to the article,
- Green hydrogen shipping around the world is deemed economically unviable by Michael Liebreich, a leading authority in clean energy and transportation.
- The lower energy density of hydrogen compared to liquid hydrocarbon fuels would require three to four times as many vessels to ship the same amount of energy as LNG, making it cost-prohibitive.
- Liebreich emphasizes that the early production of green hydrogen will be significantly more expensive, and the mechanisms to cover these costs are not yet in place.
The green hydrogen sector has seen significant investments and developments in recent years, driven by a combination of technological advancements, government policies, and growing demand for sustainable energy solutions. This is important as it can lead to a significant downfall in costs, including those in shipping, in the near future.
Here are some of the recent happenings in the green hydrogen landscape:
Our specialty focus areas include
- Market Growth: The green hydrogen market was valued at approximately USD 1.1 billion in 2023 and is projected to reach USD 30.6 billion by 2030, reflecting a compound annual growth rate (CAGR) of 61.1% from 2023 to 2030. This rapid growth is fueled by global efforts to reduce carbon emissions and advancements in electrolysis technologies.
- Government Initiatives: Governments worldwide are increasing investments in green hydrogen infrastructure. For instance, the U.S. Department of Energy announced plans to invest USD 7 billion to establish seven Regional Clean Hydrogen Hubs (H2Hubs) to promote the commercial-scale deployment of clean hydrogen. Similarly, India launched a National Green Hydrogen Mission in 2022, aiming for an annual production capacity of 5 million metric tons (MMT) by 2030, supported by a significant budget allocation for green hydrogen projects.
- Technological Advancements: Continuous improvements in electrolyzer efficiency and reductions in renewable energy costs are making green hydrogen production more viable. It is projected that costs could fall to between USD 0.70 and USD 1.60 per kg by 2050, making it competitive with fossil fuels.
- Infrastructure Development: The establishment of hydrogen production facilities integrated with renewable energy sources is becoming a common strategy. For example, Spain has developed a significant green hydrogen facility alongside a solar farm, showcasing the benefits of co-locating production and energy generation.
- Global Collaboration: International cooperation is evident in initiatives like the India-Middle East-Europe Economic Corridor (IMEC), which includes plans for hydrogen pipeline infrastructure to facilitate exports to the EU. This reflects a growing trend of countries collaborating to build a hydrogen economy.
