Manuel Villavicencio’s Post

A recent IEEFA report highlights the limitations of blue hydrogen for steel production decarbonization: 1. Inefficiency of CCS: Carbon capture underperforms, with capture rates falling below the 95% threshold claimed by proponents. 2. Methane Emissions: Significant methane leakage challenges blue hydrogen’s viability under stringent global emissions standards. 3. Strategic Risk: Investments in blue hydrogen risk obsolescence as green hydrogen becomes cost-competitive by decade’s end. 4. Market Resistance: Steelmakers and end-users increasingly reject fossil-based hydrogen due to sustainability concerns. 5. Cost and Volatility: High gas prices and CCS costs undermine blue hydrogen’s competitiveness against modular green hydrogen solutions. Green hydrogen remains the most effective path for decarbonizing steel production, despite its current costs. Source: IEEFA Report. Image: IEEFA Report #GreenHydrogen #SteelDecarbonization #CCS #H2 #Hydrogen https://lnkd.in/e_D5YJzC

New Oxford Institute for Energy Studies paper looks at how proper measurement of low carbon hydrogen’s carbon intensity reduces regulatory risk 👉 Link to OIES Publication: https://lnkd.in/eyn2SKbK    Key points: 💠  Decision on which emissions to include partly determined by system boundary 💠 Related concept Scope Emissions which differentiates emissions according to whether they are a direct or indirect result of a company’s activities 💠 Different system boundaries often described using terms such as ‘well to gate’ or ‘well to wheel’ 1️⃣ ‘Well to factory gate’ includes emissions derived from production and transport of inputs used in production process (e.g. generation of electricity or production of natural gas) and emissions from production process itself up to the point where hydrogen ready to be transported from ‘factory gate’ to end users (referred to as ‘upstream’ emissions) 2️⃣ ‘Well to customer gate’ may include emissions resulting from transportation of hydrogen, including any conversion and reconversion to and from hydrogen carriers to the customer if the ‘gate’ in question is customer’s factory gate i.e. point where the hydrogen is delivered to customer 3️⃣ ‘Well to wheel’ includes same emissions as ‘well to gate’ but adds in emissions from transportation (including any conversion and reconversion to and from hydrogen carriers) and then use of the hydrogen or hydrogen derivatives (sometimes referred to as ‘downstream’ of the production process) 💠 Scope Emissions are based on the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and are classed as follows: 1️⃣ Scope 1 emissions: A production pathway’s direct GHG emissions 2️⃣ Scope 2 emissions: GHG emissions associated with the generation of electricity outside of the hydrogen production facility, heating/cooling, or steam purchased for own consumption 3️⃣ Scope 3 emissions: A production pathway’s indirect GHG emissions other than those covered in scope 2 💠 Countries have taken different approaches to setting the system boundary and also which Scope Emissions to include; for example US and UK use a ‘well to production gate’ approach whilst the EU uses a ‘well to wheel’ approach 💠 UK, EU and US include upstream Scope 1 and Scope 2 emissions but only EU includes downstream Scope 3 emissions. None of them include Scope 3 emissions resulting from manufacture of equipment used in production of hydrogen #hydrogen #h2 #hydrogeneconomy #emissions #scopeemissions

Green Hydrogen, used selectively and efficiently, is needed for the energy transition. What is not needed are repeated claims that it will easily cost the same as fossil H2. That is what what we have had to contend with for the last 15 years and all it has done is to set unrealistic expectations and make even the best projects look like failures. Most of us who have been working in the area for the last 15 or 20 years aren’t doing so because we believe unrealistic estimates, so we aren’t fooled or distracted by mythical $1/kg claims. However, those less close to the area, or newer to it, or who are easily pulled in to a good story can easily believe these claims. But be sure, false expectations set the industry back by creating false benchmarks and diverting capital from where it can most efficiently be spent In decarbonisation. That’s why this report from TNO about the realistic levelised cost of hydrogen in Netherlands H2 projects is recommended reading. At €13/kg the cost is sobering, but it’s better to be sober with the facts in hand than hungover and facing a painful realisation. #h2 #hydrogen #NL #Netherlands #lcoh #technoeconomics https://lnkd.in/eUmvpg4f

To use green energy to ultimately produce green hydrogen energy to produce electricity makes absolutely no sense. All the system losses in this process would simply be eliminated by connecting solar / wind directly to the grid. Use nuclear to produce green hydrogen for green energy for industry, transportation and heating makes much more sense. What are your thoughts?

Today an article on IL SOLE 24 ORE capture the situation about the so called ‘Green Hydrogen Dream’ The energy transition holds immense potential, but the journey to decarbonization is far from straightforward. A striking example is the challenge of scaling up green hydrogen production. While hailed as a key solution for carbon neutrality, green hydrogen faces a fundamental barrier: cost. Recent reports highlight that costs remain prohibitively high and demand is insufficient, leading to delayed or canceled projects globally. Despite innovations and political momentum, only 12% of proposed green hydrogen plants have secured long-term purchase agreements. The technological and financial risks involved make investors wary. Moreover, studies from Harvard suggest that current cost projections for green hydrogen production are unsustainable for mass adoption. Without substantial cost reductions, green hydrogen may not achieve its full potential in decarbonization efforts by 2030. As companies and governments push forward, it’s critical to address these challenges head-on. Key Takeaways: • Green hydrogen technology must lower production costs to be viable. • The current lack of market demand and regulatory uncertainty is slowing progress. • Investments in the supply chain and distribution network are crucial to unlocking green hydrogen’s potential. As we work towards a carbon-free future, cost management will be the key to turning green hydrogen from an ambitious vision into a feasible reality, until that moment we will be ‘energy dependent’ on very unstable Regions. #Sustainability #GreenHydrogen #EnergyTransition #Decarbonization #CleanEnergy #Innovation #globalwarming

🌍💡 Insights from the Global Hydrogen Offtake Trends Report 🚀🔍 The clean hydrogen industry is at a pivotal juncture, with enthusiasm from governments and developers tempered by cautious offtakers. Key takeaways from the report include: 🌱 Nascent Industry: Only 10% of planned capacity by 2030 has secured buyers due to high green premiums and insufficient subsidies. 🏭✈️🚢 Rising Demand: Decarbonisation efforts in steel, aviation, and shipping are expected to drive hydrogen demand. 💰🔧 Incentives: Initiatives like the US Inflation Reduction Act and European Hydrogen Bank are crucial but need complementary demand-side incentives. 🛤️🏗️ Infrastructure: Germany’s 9,700 km hydrogen pipeline network exemplifies the critical need for robust infrastructure. 📉🤝 Major Deals: Binding offtake agreements are limited, with significant deals in the fertiliser, refining, and steel sectors. The report underscores the need for enhanced infrastructure and effective incentives to balance the enthusiasm and practical challenges in the hydrogen market. 🌐📊 #HydrogenEconomy #CleanEnergy #Decarbonisation #InfrastructureDevelopment #SustainableFuture

How does ClimateXChange support the Scottish Government as it develops policies? Here's a case study. The Scottish Government’s Hydrogen Action Plan set forth Scotland’s ambition to become a leading producer and exporter of hydrogen. To advance these ambitions, we commissioned several studies to identify the skills and workforce needed to support the hydrogen sector, evaluate Scotland’s export potential and explore options for energy storage. ClimateXChange has built evidence across many and complex questions on the development of Scotland’s hydrogen economy. We ensured that policymakers were provided with the best, clear and timely answers, with our reports significantly influencing policy and strategic directions. Find out more in our impact pages: https://lnkd.in/gZ5sPw4T #hydrogen #ResearchForPolicy Nicola Dunn | Gemserv, a Talan Company | B Corp Certified | Katriona Edlmann

Let’s clear up a common myth:Hydrogen is just for rockets and heavy industry.   Here’s the reality: Hydrogen is already powering our world in exciting and transformative ways.   From fueling emission-free buses and trucks 🚛 to heating homes 🏠 and storing renewable energy 🌱, hydrogen’s potential is limitless.   But it doesn’t stop there. In sectors like steel and ammonia production—where electrification is currently unfeasible—hydrogen can cut emissions by up to 90%. That’s not just a game-changer; it’s a lifeline for decarbonizing industries that have been stuck in the past.   So, why does this matter? By 2050, global hydrogen demand is expected to nearly quadruple compared to today. Crucially, almost all of this growth will come from low-emissions hydrogen, produced using renewable energy or fossil fuels with carbon capture. This shift is pivotal for decarbonizing heavy transport, industry, and power generation while meeting global climate goals. (https://lnkd.in/dpw6amvY)   💡 Imagine a world where planes, ships, and even your neighborhood thrive on green hydrogen. We’re not there yet, but every step in innovation brings us closer.   👉 How do you think hydrogen could change your life?   Let’s talk about the possibilities. Drop your thoughts in the comments! #HydrogenRevolution #SustainableEnergy #Decarbonization #GreenInnovation #FutureOfEnergy

🌱 Hydrogen is a major focus for us at Optimat Ltd. Last year, we conducted a hydrogen skills landscape mapping for ClimateXChange, which highlighted some themes that resonate not only across the energy sector but beyond. In a competitive environment where STEM skills are in high demand, we aren't just facing a skills gap—we're grappling with a talent shortage. 🔍 Skills gap: When the workforce lacks the right skills to meet job demands—often due to rapid technological changes or evolving industry needs. 🚨 Talent shortage: When there simply aren't enough qualified people to fill workforce demands. This is driven by factors such as demographic shifts or the lack of appeal in certain sectors. In a strategic context, understanding this difference is crucial. While skills gaps can be closed through upskilling and reskilling, talent shortages often demand a more complex, multistakeholder approach to attract new talent. 💡 More insights coming soon. Stay tuned!

Is the #hydrogen sector expecting more #realism? Technological breakthrough and strong political commiment haven contributed to hydrogen very quickly becoming a ‘Peak of Inflated Expectations’, capable of transforming the economy. However, the price of green hydrogen is still high, and Europe will rely on hydrogen imported from abroad by 2030. To speed up the ramp-up of green hydrogen, the European Union is facing demands from market players to leverage support for infrastructure and electrolysis technology, remove barriers to global hydrogen trade, standardise hydrogen products and create a uniform and efficient regulatory framework. More about the EEHH-trip to European Hydrogen Week 2024 under https://lnkd.in/eHTxyTWE ©️European Hydrogen Week/Hydrogen Europe