Issue #1: No turning back
The first issue of Hydrogenthusiasts includes an overview of 2020's major green hydrogen news focused on the private sector
1 big thing: No turning back
In a forthcoming episode of ClimateBiz (IFC’s podcast on all things climate business), I was asked to characterize 2021 in terms of what I thought it meant for green hydrogen. I said it would be “the year of no turning back...” and then I made a Star Wars joke “...but never tell me the odds” (this may or may not make the final cut).
Regardless, 2019 was a “critical year for green hydrogen” (IEA), 2020 was “the year of green hydrogen” (GTM), and the 2020s have been heralded “the decade of green hydrogen” (Telegraph). Keeping in mind that this is not our first hydrogen rodeo (see: the Hindenburg, Japan’s Sunshine Project, the technology bubble at the turn of the century), let’s look back at 2020:
In April, Wood Mackenzie reported that the green hydrogen pipeline had more than doubled (8.2 GW) over the past 5 months
June: German hydrogen strategy released (ClEW)
July: EU announces goal to deploy 40 GW of electrolyzers by 2030 (GTM, the plan here)
By September, a report from the German chapter of the World Energy Council found that by 2025 green hydrogen strategies will likely cover countries representing >80% of global GDP. Also, France released its strategy – Clifford Chance)
In November, the U.K. announced a 5 GW deployment in “low-carbon” hydrogen by 2030 (S&P Global, FT) and Finland released its roadmap. Chile also rolled out its strategy (S&P Global)
In December the UN along with ACWA Power, CWP Renewables, Envision, Iberdrola, Ørsted, Snam, and Yara launched the Green Hydrogen Catapult initiative to deploy “25 gigawatts through 2026 of renewables-based hydrogen production, with a view to halve the current cost of hydrogen to below US$2 per kilogram”. Also, India released its strategy.
And emerging markets? My response to “what is going on in EMs?” is that we’re playing a very attentive waiting game: We need to see actual deployment at scale for a credible amount of time before we can make bankable investments. That said, countries including Morocco, Chile, India, and China are very active and making their interest known to investors and potential partners in the EU. Also, check out the ESMAP report Green Hydrogen in Developing Countries.
Updates & announcements: The private sector
A rendering of an offshore green-hydrogen platform / Photo: Tractebel, from Recharge
In brief,
By the end of 2020, 80 GW worth of renewable green hydrogen projects had been announced (50 GW in 2020 alone). Just 10 projects account for 62 GW (REcharge).
Unless you live under a rock you probably read about Nikola, check out The Interchange’s June 10 podcast: The Strange Hype Around Nikola Motor.
Electrolyzer producers (Nel, ITM Power, thyssenkrupp, Siemens, McPhy) are likewise making headlines with expansion announcements, including gigafactories (GTM).
Resources
In August, ESMAP published Green Hydrogen in Developing Countries
IRENA recently published “Green Hydrogen Cost Reduction: scaling up electrolysers to meet the 1.5 C climate goal”
Back in October, BNEF founder Michael Liebreich weighed in with a two-part post called “Separating Hype from Hydrogen”.
Part One: The Supply Side pokes some credible holes in the hype bubble (“The very idea of using surplus renewable energy to generate hydrogen will turn out to be, on the whole, a mirage...”)
Part Two: The Demand Side, or “What if the world throws a hydrogen party and no one shows up?”
Additional 2020 hydrogen roundups and 2021 crystal gazing:
The basics:
This15-minute video from CNBC provides a very clear yet comprehensive overview.
Carbon Brief’s “In-depth Q&A: Does the world need hydrogen to solve climate change?” provides even more detail as well as how green hydrogen can work in various sectors.
Other cool stuff:
The Gospel of Hydrogen Power (NYT): Mike Strizki’s hydrogen-themed retirement
A new color: Gold hydrogen, or “natural” hydrogen