Published by Todd Bush on March 12, 2024
BOSTON, March 11, 2024 /PRNewswire/ -- In a new report prepared with support from the Environmental Defense Fund, economists from The Brattle Group evaluate the factors driving investment in hydrogen (H2) as a low-carbon alternative fuel or energy carrier. Specifically, they explore how the production and delivery costs of H2 are changing under the influence of recent strong tax incentives, US Department of Energy (DOE) support for hydrogen research and hub development, rapid commercialization, and projected technology improvements.
>> In Other News: Terra Announces Full Concrete Trials of OPUS ZERO™, A Real Zero CO2 Alternative to Portland Cement
The report, Emerging Economics of Hydrogen Production and Delivery, compares the cost of hydrogen under a few different modes of production, as well as potential differences based on year and region. These comparisons include:
The report finds that public programs, especially the recent federal Clean Hydrogen Production tax credits (45V), can offset around half of green H2 production costs, making it competitive with conventional H2 (known as "grey hydrogen," which is produced from natural gas without carbon capture). The projected decline in electrolysis costs could achieve comparable reductions, potentially reaching or beating the DOE's "hydrogen shot" goal of $1/kg by 2030 in some markets. Blue hydrogen costs are also projected to reach cost parity with grey hydrogen by 2030. These costs will likely be competitive with natural gas as a fuel, especially if it has a carbon emissions penalty.
A nationally interconnected market for clean H2 may be slow in coming, according to the report; instead, H2 will likely be produced in close geographic proximity to end users, with costs and technologies used varying by location. Finally, the authors note that there is a clear ladder of priority for use across industries, with hard-to-electrify industrial applications and some heavy-duty transportation at the top of the list. However, meeting the DOE's projected national demand by 2050 of 50 million metric tons per year of H2 could require up to 700 GW of renewable power.
Emerging Economics of Hydrogen Production is authored by Principal Frank Graves, Senior Associate Josh Figueroa, Energy Associate Ragini Sreenath, Senior Energy Analyst Jadon Grove, Senior Research Analyst Lorenzo Sala, and outside expert Stephen Thumb. The full report is available at https://www.brattle.com/insights-events/publications/emerging-economics-of-hydrogen-delivery-and-production/.
The Brattle Group answers complex economic, finance, and regulatory questions for corporations, law firms, and governments around the world. We are distinguished by the clarity of our insights and the credibility of our experts, which include leading international academics and industry specialists. Brattle has 500 professionals across North America, Europe, and Asia-Pacific. For more information, please visit brattle.com.
SOURCE The Brattle Group
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside this Issue 🔒 Capturepoint Annouces Agreements With Energy Transfer for Carbon Capture and Storage in Louisiana ✈️ Taking Flight with Sustainable Aviation Fuels: A New Era for Cleaner Skies ...
Inside this Issue 🚗 Nikola Expands Hydrogen Network With Inauguration of Second Hyla Refueling Station in Southern California 🌱 Captura Advances to the Top 20 Finalists in XPRIZE Carbon Removal Co...
Inside this Issue ✈️ U.S. Department of the Treasury, IRS Release Guidance to Drive American Innovation, Cut Aviation Sector Emissions 🛫 ESS Technology Takes Off at Schiphol to Decarbonize Air Tra...
Capturepoint Annouces Agreements With Energy Transfer for Carbon Capture and Storage in Louisiana
_Agreements formalize a joint development framework and dedication of CO2 from additional Energy Transfer facilities in Louisiana_ ALLEN, TEXAS, May 8, 2024 – [CapturePoint LLC and affiliate Cap...
Nexergy Holdings PLC and Lorentz Collaborate to Revolutionise Green Hydrogen Production
**The collaboration by Nexergy and Lorentz will realise the commercial production of ‘Green’ Hydrogen for use in multiple industries.** London, UK, May 09, 2024 (GLOBE NEWSWIRE) -- [Nexergy Hold...
_Air Products will Highlight the PRISM_® _GreenSep LNG membrane separator at BIOGAS AMERICAS 2024 in Savannah, Georgia_ LEHIGH VALLEY, Pa., May 10, 2024 /PRNewswire/ -- [Air Products](https://ww...
Energy Vault, ACEN Australia Announce Agreement for 400 MWh of Battery Energy Storage Deployments
_ACEN Australia and Energy Vault to collaborate on battery energy storage system (BESS) deployments, with 200 MW/400 MWh system, at ACEN Australia’s 720 MW New England Solar_ _The 50 MW/100 MWh ...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.