Paul Rodden • Season: 2024 • Episode: 348
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Welcome to The Hydrogen Podcast!
In episode 348, In this episode of The Hydrogen Podcast, Paul Rodden discusses ExxonMobil’s collaboration with Mitsubishi for a low-carbon hydrogen project in Texas, Australia’s $50 billion green hydrogen initiative, TotalEnergies’ investment in the Japanese hydrogen fund, and BP and Iberdrola’s green hydrogen plant in Spain. These developments highlight the global momentum towards hydrogen as a key driver in the energy transition and the significant investment opportunities emerging in this sector.
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Transcript:
Exxon Mobile gets another massive investor followed ADNOC Australia wants to lead the world in green hydrogen production. Totaal Energies becomes an investor in Japan and BP and Ibudrola look to decarbonize oil production in Spain. I’ll go over all of this news and give my thoughts 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 who 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 that will unlock the potential of hydrogen and this podcast will give you the answers. My name is Paul Rodden and welcome the Hydrogen Podcast.
First up today in an article in Benzinga Laika Gupta writes Exxon and tissue joined forces for low carbon hydrogen project. Exxon Mobile corporation shares are trading higher pre-market Friday. Exxon Mobile inked a project framework agreement with Mitsubishi corporation for participation in its Baytown Texas facility under the terms of the agreement the companies will advance talks regarding Mitsubishi off take of low carbon ammonia and equity participation in the project a final investment decision is expected in 2025 with startup projected for 2029 Exxonmobile low carbon hydrogen and ammonia will offer customers a reliable low carbon energy source adhering to high operational standards Mitsubishi plans to convert part of its LPG terminal to an ammonia terminal for trans-shipment supplying low carbon ammonia to industries such as power automotive and chemical in Japan’s Shikoku and Chugoku regions Mitsubishi has also created a council for utilizing Namikada terminal as a hub for introducing the fuel ammonia aiming to handle 1 million tons of low carbon ammonia annually by 2030.
Masaru Saito group CEO the environmental energy group Mitsubishi corporations stated quote we are excited to be closely collaborating with Exxonmobil to deliver low carbon hydrogen and ammonia supply chains that will bridge the United States and Japan also saying we are also working with Idemitsu Kosan which is developing an ammonia hub near to participate in Exxon Mobil’s hydrogen facility with us. Together we will lead this joint initiative to assist in the acceleration of hard to obey soft sector’s transition to clean energy.
Okay so Exxon Mobil continues marching forward with and gaining investors for their baytown plant this following the news just a week ago that Exxon Mobil brought in ADNOC as an investor and so with all of this global investment coming to the baytown plant it would be highly likely for Exxon Mobile to cancel it. The big question still remains regarding the three pillars and just how will the Treasury Department determine what projects qualify. Next, in an article in oil price com Svetlana Paraskova writes Australia unveils 50 billion dollar plan to lead global green hydrogen market. She writes, Australia looks to develop domestic green hydrogen industry and export clean hydrogen and a bid to become a global hydrogen leader.
The government of one of the world’s top LNG exporters said on Friday, The Australian government today published its new hydrogen strategy which identifies objectives and actions to take and underpin delivery of Australia’s hydrogen industry at scale. The key to the government’s plan is funding through an estimated 5.4 billion US Dollars allocation made in this year’s federal budget. The funding will support the green hydrogen production tax incentive and the expanded Green Hydrogen Head Start program. This, according to the government, Australia plans to invest as much as 15 billion US Dollars over the next decade to become a renewable energy superpower and boost its domestic critical minerals economy. This is according to the Labour Government in a statement in May. With the new hydrogen strategy unveiled today. The government expects the incentives to unlock 33.6 billion US Dollars in private sector investment in the clean hydrogen industry.
Under the plan, Australia’s annual domestic production capacity is expected to exceed one million tonnes of green hydrogen by 2030. It anticipates possible annual production targets of 15 million tonnes by 2050 supported by five yearly milestones. The government says that Australia is already well-placed to become a world leader in green hydrogen with the International Energy Agency or IEA estimating more than 20% of the announced hydrogen projects globally are in Australia in a quote from Chris Bowen, Minister for Climate Change and Energy, as our industry scales it will provide further and greater benefit for communities support broader economic growth and provide a key lever for Australia to reach net zero. He also said it sends a clear signal to the trading partners about the future marketplace in Australia for hydrogen fuels saying we’re ready to see the benefits of this through expanding trading agreements with key partners such as Germany.
Okay so I would say the title is a little misleading in that the Australian government isn’t fronting the full 50 billion dollars just 15 with the hopes of bringing in 35 billion in private investment but that’s still an extreme amount of public capital that the Australian government is looking to put into Green Hydrogen nearly twice as much as the U.S. hub investment. So could Australia lead the world in green hydrogen? Well it really wouldn’t be much of a stretch for that accomplishment. They were already on the front lines of green hydrogen production years ago and were the first to ship globally. If they can continue to find international offtake interest in green hydrogen then Australia can easily take the lead in global green hydrogen production.
Next in a press release on September 12th Total Energies joins the first Japanese fund dedicated to the development of low carbon hydrogen. Total Energies announces its entry as an investor in the Japanese hydrogen fund at its first close joining several major Japanese companies in this fund dedicated to developing the low carbon hydrogen value chain. At its launch the fund was initially endowed with over 400 million dollars thanks to contributions from prominent Japanese investors Toyota Motor Corporation, Iwatani Corporation, Sumitomo Mitsui Banking Corporation. MUFG Bank, Tokyo Century Corporation, Japan Green Investment Corporation for carbon neutrality and the Bank of Fukuoka the fund will be managed by Advantage partners one of Japan’s leading private equity firms and is launched by the Japan hydrogen association or the jh2a h2a the largest private hydrogen value chain promotion council in Japan representing over 440 members and aiming to promote sustainable development with hydrogen and a quote from hellie christofferson president of asia and member of the executive committee of totale energies Total Energies is pleased to support an ambitious fund dedicated to developing the hydrogen value chain in Japan and globally as the only non-japanese investor at this stage we are convinced that only a collective effort will enable low carbon hydrogen solutions to emerge on an industry scale this initiative aligns with our ambition to be a global player in the energy transition and will also allow us to leverage the dynamism of the hydrogen ecosystem in the Japanese industry okay so total energies joining the japan hydrogen fund as an investor and with an initial close of over 400 million dollars this is a decent sized fund to begin allocating capital japan is one of the if not the prime hydrogen development markets currently in existence so we very interesting to see just how this fund is managed i know this really says japan and globally but there is easily 400 million dollars worth of infrastructure investment needed in japan so I would be surprised if any of these dollars went anywhere other than Japan.
And lastly in an article in reuters Ibudrola and BP to build a 25 megawatt green hydrogen project in spain. Spanish renewable power company Ibudrola and Britain’s BBC on Thursday they had agreed to build a 25 MW green hydrogen plant in Castillon on Spain’s eastern coast The project which will benefit from a 15 million euro or 16 and a half million dollar EU subsidy is designed to help BP reduce the carbon footprint of its oil refinery located in Castillon the two companies said in a joint statement BP and Ibudrola will each finance half of the project but they did not disclose the cost of the building of the plant green hydrogen production uses electricity from renewable power plants such as wind and solar to separate hydrogen from water through electrolysis and as part of Europe’s strategy to tackle carbon emissions and improve energy security.
Okay so BP and Ibudrola working with green hydrogen to reduce the co2 footprint at Castillon now a 25 megawatt facility may not sound like much but if they were looking to target that one facility a 25 megawatt operation should produce plenty of hydrogen for that project and while we don’t know the full cost of the plant we do know that Spain is kicking in 15 million euros in subsidies to help with the funding. This also means that we have another European hydrogen project fully self contained without the need to import hydrogen. These smaller projects are exactly what I believe we will see more of in the future and really what the three pillars in Europe are targeting new renewable facilities producing hydrogen with nearby offtake.
Alright that’s it for me everyone if you have a second I would really appreciate it if you could leave a good review and whatever platform it is that you listen to Apple podcasts Spotify Google YouTube whatever it is that would be a tremendous help to the show and as always if you ever have any feedback you open to email me directly at info at the hydrogen podcast com so until next time keep your eyes up and honor one another.
Hey this is Paul I hope you liked this podcast if you did and 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 very much appreciate it have a great day
