January 03, 2022 • Paul Rodden • Season: 2022 • Episode: 78
Welcome to The Hydrogen Podcast!
In episode 078, The news of the Hyundai fuel cell death is greatly exaggerated monolith with a huge announcement. And the hydrogen storage market looks to see massive growth in the next five years. All of this on today’s hydrogen podcast.
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Transcript:
The news of the Hyundai fuel cell death is greatly exaggerated monolith with a huge announcement. And the hydrogen storage market looks to see massive growth in the next five years. 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 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 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.
An article for the Korea Times. Author Kim Hyun-Bin writes Hyundai to proceed with hydrogen fuel cell project reports that said that Hyundai Motor Group would drop its project to move forward with the production of the Genesis hydrogen fuel cell electric vehicle recently caused hydrogen car related stocks to instantly fall. However, industry officials said Friday that the country’s top automotive company won’t abandon the development of hydrogen fuel cell EVs. According to local reports. The research project of the third generation hydrogen fuel cell set to be installed in the Genesis hydrogen car did not reach its development goals.
They said that the Genesis hydrogen vehicle development project has been temporarily delayed and as a result, the role of the fuel cell department was significantly reduced through organizational restructuring and personnel management last month. Investors reacted negatively on the reports was Sang-A Frontec dropping 12.86% Iljin Hysolus hydrogen tank maker and affiliate of the Iljin Group also falling by 9.87% on with a Hyosung Advanced Materials declining 6.94% and Unique with 4.69% Doosan Fuel Cell with 4.59% and Kolon Industries with 3.84% retreats respectively. In an official quote from Hyundai Motor Group, the hydrogen fuel cell EV project has not been halted but rather delayed, as it encountered some difficulties during research, but Hyundai has been and will continue to develop hydrogen fuel cell EVs.
Although it is true that Genesis is hydrogen car development has been delayed. The outlook is favorable in the automotive industry. And a quote from Han Byeong-hwa, a researcher at Eugene Investment & Securities said the reason Hyundai and Toyota are making their first investments centered on passenger cars is that they are an intermediate process for achieving the systemization of materials and parts development and mass production. There might be some small tweaks in the process, but they will have minimal impact on the overall hydrogen fuel cell EV growth plan. Thoughts are that were only a matter of a difference in the speed of project developments as support for hydrogen vehicles continues. With the goal of achieving carbon neutrality and other countries including China and the United States. Han continues by saying China is strong and supporting hydrogen cars following electric vehicles.
The US will inject government funds in hydrogen cars as well as the hydrogen industry from next year. The European Union countries also made it mandatory to install hydrogen charging stations every 150 kilometers on major roads. hydrogen cars are in an early stage like electric vehicles were 10 years ago, it is necessary to consider future growth rather than economic feasibility at this point. Okay, so an interesting article in the Korea Times about Hyundai and their fuel cell EV projects. And I’m sure many of you read the news last week about this development and thought that Hyundai was actually closing down this department. And I’m glad to read that it’s not. And while I’m sure Hyundai and Toyota will continue to push their r&d further into the future, there’s no real need to rush anything to market at the consumer level right now.
That being said, the news on the EU mandate about installing charging stations for hydrogen every 150 kilometers is interesting news and that could potentially accelerate consumer sales of passenger vehicles. Next, in a press release by Monolith, they have received conditional approval for $1 Billion US Department of Energy loan monolith a leader in clean materials production today, December 23, announced it has received conditional approval for a $1.04 billion loan from the US Department of Energy established via the title 17 innovative energy loan guarantee program. The loan will allow monolith to expand its clean hydrogen and carbon black production facilities and Hallam Nebraska USA, and a quote from Rob Hanson, co founder and CEO of monolith, reaching the ambitious goal of global decarbonisation by 2050 require the innovation of American companies like monolith and the resources of like minded organizations like the Department of Energy.
Monolith was founded with the belief that private sector companies could develop the innovation needed to help lead the clean energy transition, while also creating high paying Green jobs and strengthening our nation’s supply chain. The title 17 innovative energy loan guarantee programs purpose is to recognize and support technology that reduces emissions and supports a clean energy future. This is according to the Department of Energy Secretary Jennifer Granholm. She says Advanced clean production technology like Monolith’s are the types of impact projects that support not just sustainability but economic growth and clean energy jobs for the American people. Monolith cleanly produces essential materials utilized by a wide variety of industries including hydrogen, ammonia, and carbon black.
Carbon Black is a material found in many everyday products, but it’s perhaps most commonly used in tires. Leading tire manufacturers, including Goodyear and Michelin expressed their support for the DOE’s conditional approval, and monoliths technology. And a quote from Richard Kramer, Chairman, Chief Executive Officer and president of the Goodyear Tire and Rubber Company says, As the only US headquartered tire manufacturer, it’s especially rewarding to be at the connection point, a significant us innovation with monolith and the commitment of the Department of Energy to sustainable outcomes. He continues, saying, We are excited to work with monolith and reduce our carbon footprint and further our use of alternative materials as we continue to deliver industry leading products.
And according to Alexis Garcin, chairman and president of Michelin North America, promoting the mobility of people in goods while protecting our planet requires investments in innovative and sustainable solutions. partnering with organizations like monolith with the support of the Department of Energy is the latest example of how we Michelin intend to further accelerate toward our goal of 100% Sustainable tire by 2050 for a better life in motion. Title 17 of the Energy Policy Act of 2005 provides authority for the DOE to guarantee loans for projects that quote, avoid, reduce or sequester air pollutants, or anthropogenic emissions of greenhouse gases and employing new or significantly improved technologies as compared to commercial technologies and service in the United States at the time of the guarantee is issued.
Current conventional processes to create carbon black released large amounts of greenhouse gases into the atmosphere through Monolith’s methane pyrolysis technology, the company is able to prevent an estimated 2.3 tonnes of co2 from being released for every tonne of carbon black produced with its production of cleanly made hydrogen, carbon black and ammonia. Monolith expects that it’s Olive Creek expansion will prevent 1 million tons of greenhouse gases from entering the atmosphere each year compared to the traditional manufacturing processes. Well, this conditional commitment demonstrates DOE’s intent to finance the project, several steps remain, and certain conditions must be satisfied before a final loan guarantee is issued.
Monolith’s expansion is predicted to generate significant economic development starting with approximately 1000 jobs to support the facility expansion. Once completed, the facility will generate around 260 direct and 600 indirect high paying highly skilled green energy jobs to support its operations. Once completed, Monolith’s expanded Olive Creek plant is expected to be the largest carbon black production facility in the United States, producing an estimated 194,000 metric tons per year. The construction of this innovative facility is expected to be performed by Kiewit, one of North America’s largest and most respected Engineering and Construction organizations. Okay, so quite a bit of money being put behind monolith by the US government.
And to me this isn’t surprising at all. The methane pyrolysis method that monolith uses, creates a very clean, very low carbon intensity scale hydrogen and it’s also a technology that I believe could take the front lines as the choice for large scale hydrogen production. And lastly, in a press release from brand essence market research and consulting at 8.2% compound annual growth rate, the hydrogen storage market looks to hit $1.1 billion dollars by 2027. The press release states that the global hydrogen storage market in terms of revenue was worth around 632 million US dollars in 2020 and expected to reach $1.1 billion by 2027. growing at a compound annual growth rate of 8.2% from 2021 to 2027. The global hydrogen storage market size is expected to grow at a substantial growth rate due to several driving factors. increasing investment in hydrogen storage among loads by small and major companies and rising adoption of hydrogen storage as a substitute fuel for hydrocarbons among different end users are driving the growth of global hydrogen storage market.
According to the report, the key hydrogen storage statistics to look out for are the costs. The US Department of Energy estimates that the hydrogen flow of 10 kilograms per hour for gas storage can cost just under $1 per kilogram. However, in future scenarios with economies of scale, this cost can decrease to 25 cents per kilogram for gas storage and similarly, for solid storage with 10,000 kilograms for our storage requirements. The cost as hydrogen storage statistics are is key to development of various applications like renewable energy storage. In both stationary and portable varieties, the renewable energy is likely to suffer from seasonal paralysis in demand. On the other hand, high cost for storage for seasons can be a major barrier, and it’s key potential application like fuel for vehicles and power supply.
In their key players analysis the hydrogen storage market lists as a competitive, innovative and fragmented landscape. The growing demand for hydrogen fuel cell storage various advancements in its end applications and growing entry of global manufacturers like Toyota and hydrogen space remain promising drivers of future growth. Key hydrogen statistics to watch out for remain the capacity of vehicles, the time for refueling and costs. Various energy agencies around the world continue to estimate reasonable costs in order to achieve a promising commercial application of hydrogen based fuel cells. Furthermore, hydrogen storage tank manufacturers continue to invest in new technologies to ramp up production of hydrogen to achieve economies of scale.
And lastly, hydrogen storage tank manufacturers remain on their toes as investments for research and promising commercial applications for hydrogen open up on November 10, of 2021, Huadi International Group, A key manufacturer of industrial steel pipes announced it entered into a partnership with Zhejian Lanneng Gas Equipment Limited, the partnership aims at jointly developing and producing high pressure hydrogen storage tanks stainless steel pipes. The press release issued noted that hydrogen powered vehicles promise better endurance and replenishment capabilities as compared to fuel vehicles. The growing collaboration to make advancement remains a defining driver for growth for hydrogen storage tank manufacturers.
So some interesting insights into the growth of a very important sub market for hydrogen hydrogen storage. Now, do I believe this marker will be $1.1 billion by 2027? Actually, I think it’s highly likely, especially given the news that on December 30, the world’s first hydrogen carrier departed Japan on its maiden voyage.
Alright, that’s it for me everyone. If you have any questions, comments or concerns about today’s episode, come and visit me at my website at thehydrogenpodcast.com or you can always email me at info@thehydrogenpodcast.com. 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 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. I very much appreciate it. Have a great day.
