June 21, 2021 • Paul Rodden • Season: 2021 • Episode: 22
Welcome to The Hydrogen Podcast!
In episode 022, I discuss which company has a positive outlook on wind powered green hydrogen, and an update on some hydrogen stocks. Also, the US Department of Energy is finally taking a close look at hydrogen and if they ramp up their support, it could get really interesting for the US and the rest of the world.
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Paul Rodden
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Transcript:
Siemens Gamesa has a positive outlook on wind powered green hydrogen, an update on some hydrogen stock information. Sinopec is targeting a massive amount of green hydrogen by 2025. And the US Department of Energy is finally taking a close look at hydrogen. All of this on today’s hydrogen podcast.
So the big questions in the energy industry today are, how is hydrogen the primary driving force behind the evolution of energy? Where is capital being deployed for hydrogen projects globally? And where are the best investment opportunities for early adopters recognize the importance of hydrogen? I will address the critical issues and give you the information you need to deploy capital. Those are the questions will unlock the potential of hydrogen and this podcast will give you the answers. My name is Paul Rodden and welcome to the hydrogen podcast.
Okay, so Siemens Gamesa issued a white paper on June 9, stating that wind power could make it possible to produce hydrogen without emitting greenhouse gases as cheaply as is currently feasible with fossil fuel energy by 2030. This According to an article in reuters.com. They believe that by using onshore wind turbines to power electrolyzers, that extract hydrogen from water could become as cheap as making it by fossil fuels by 2030. And then offshore wind could get there by 2035. But they also said they base their cost forecasts on what they described as a fair pricing for permits to emit carbon dioxide. And they also said it would only be possible to bring down the cost of green hydrogen and boost production, if government and industry speed up renewable capacity, developing a supply chain and supporting infrastructure.
Siemens does also acknowledge the difficulty in producing green hydrogen at scale that they’re predicting needs to be delivered by their 2050 target. Okay, so just a little blip on some stocks to take count of. First let’s take a look at Cummins Inc. Now, Cummins is a bit of a rare bird in this space, because historically they’re known to produce internal combustion engines mainly diesel engines for heavy duty trucks. But now Cummins is planning to build one of the world’s largest electrolyzer plants for the production of green hydrogen in Spain. Now, that is in collaboration with Iberdrola. The facility will cost 50 million euros and will produce about 500 megawatts of polymer electrolyte membrane electrolyzers per year with the potential to reach 1000 megawatts a year. And it’s expected to be operational by 2023.
The next company to take a look at is AmmPower. And they are betting big in the ammonia game. Specifically green ammonia, which according to oilprice.com has nine times the energy capacity of lithium ion batteries, and is 1.8 times more energy dense than liquid hydrogen. Now, what AmmPower is looking to do is build modular, scalable stackable green ammonia producing units that could be flexible enough to fit a wide array of customers from individual organizations, farmers, marine vessels, large marine ports and distribution hubs. And also just a little bit of background on ammonia. Right now there are over 120 Global ports already accepting ammonia. The hydrogen ammonia blend tankers aren’t futuristic, they’re already getting developed.
The World Bank has already recommended avoiding LNG bunkering in favor of hydrogen and ammonia. Argus is reporting that global ammonia production stands right now at 180 million tons per year. But its potential use as an energy source and energy carrier could see demand rise to a multibillion ton market for use in a wide range of applications. And according to some reports, the global ammonia industry is expected to top at least 70 billion by 2027. And in this new market, 2027 is right around the corner. Okay, now let’s talk about China’s Sinopec and their target of 500,000 tons of quote unquote green hydrogen capacity by 2025.
Reported by Reuters on June 9, China’s state controlled energy giant Sinopec aims to set up plants that can make 500,000 tons of hydrogen a year from renewable energy sources by 2025. This is according to a company executive. Now the company also reports having hydrogen production capacity of 3.84 million tonnes, but half of that coming from byproduct from its refineries and a third of that from coal. And according to the Vice President of Sinopec, they said that the company will aim to boost green hydrogen production to over a million tonnes cumulatively during the 2021 to 2025 period, and will focus on developing hydrogen as a transportation fuel and green hydrogen refining. They have also vowed to be China’s leading hydrogen company and set up 1000 hydrogen filling stations across the Country. Also, the company in late May announced its first green hydrogen project, which was a 20,000 tonne per year plant located in Inner Mongolia, which is expected to launch its first phase in 2022.
It also plans to build another 20,000 tonne green hydrogen project in Xinjiang. And along with the production facilities Sinopec will also build hydrogen transport pipelines to connect the producers to the downstream market. So far, the company operates three pipelines with a total length of 99 kilometers. Now, if this report is true, my hope is that this green revolution in China is actually supplanting the coal hydrogen production, but only time will tell. And lastly, the US Department of Energy is aiming to reduce the cost of hydrogen from $5 a kilogram overall to $1 within a decade, in an article from natural gas Intel, they report that while the energy industry has started to add hydrogen to its mix, there are still several obstacles in the way of large scale deployment. With this cost reduction, part of the novel energy earshot initiative, which is being spearheaded by US Energy Secretary Jennifer Granholm looks to achieve a five fold increase in demand for green hydrogen, which can be produced from renewables nuclear and thermal conversion.
And according to Secretary Granholm, the energy ear shots are an all hands on deck call for innovation, collaboration and acceleration of our clean energy economy by tackling the toughest remaining barriers to quickly deploy emerging clean energy technologies at scale. First up, she says hydrogen shot, which sets an ambitious yet achievable cost target to accelerate innovations and spur demand of clean hydrogen. And according to a report from the hill.com Granholm also stated that hydrogen is quote unquote, a game changer, and will help to decarbonize high polluting heavy duty and industrial sectors, while delivering good paying clean energy jobs, and realizing a net zero economy by 2050. But to me, the most impressive part of this initiative is that they’re not just focusing on one particular type of hydrogen, not one particular technology.
They’re looking at the broad spectrum of hydrogen development, which looks to be focused on cells that run on energy from water, renewables, nuclear, or hydrocarbons. Wind technology is used to capture their emissions. So am I impressed by this initiative? Absolutely. This is what the US has desperately needed to start to catch up with the rest of the world on hydrogen development, and I’m very much looking forward to seeing what Jennifer Granholm can accomplish as Energy Secretary. Okay, well, that’s it for me, everyone. If you have any questions or comments, come and visit my website at thehydrogenpodcast.com. And let me know I would really love to hear from you. And as always, take care. Stay safe. I’ll talk to you later.
Hey, this is Paul. I hope you liked this podcast. If you did want to hear more. I’d appreciate it if you would either. Subscribe to this channel on YouTube, or connect with your favorite platform through my website at www.thehydrogenpodcast.com. Thanks for listening. I very much appreciate it. Have a great day.
