Net zero: mission impossible without hydrogen, Bernstein says

Ceres

15/06/2022 14:27

** Bernstein says that reaching net zero is "simply
impossible" without hydrogen and stresses the importance of
government policy to engineer a lift off in H2
    ** It notes the EU and China have the most advanced policy
support, while the United States is likely to announce a
hydrogen tax credit this year, a potential catalyst
    ** With rising fossil fuel prices, the brokerage sees 2022
as a "breakthrough year for the electrolyser", with a role for
Alkaline, polymer electrolyte membrane and solid oxide
    ** Although Bernstein ultimately expects green hydrogen to
dominate, it flags that blue hydrogen can help grow supply until
renewable capacity is sufficient
    ** "Hydrogen costs are falling quickly," it adds, with blue
hydrogen at $1.50-2/kg and green hydrogen on track to drop to
$1-2/kg before 2030 - cheaper than crude oil
    ** Bernstein says transport remains a conundrum: transport
by pipeline is very efficient, while liquid hydrogen could be an
answer for sea transport if costs are reduced significantly
    ** "Transport will follow the growth in hydrogen supply,"
the brokerage adds, with growth in hydrogen projects working as
a catalyst for truck and bus makers
    ** Bernstein also notes no new technology is needed for the
fuel cell industry, but costs need to come down further, which
it expects to happen with scale up

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))