According to a study by BloombergNEF, only 10% of the projected clean hydrogen production capacity for 2030 has a buyer.
Many companies have plans to produce hydrogen, but far fewer are enthusiastic about buying it. According to a study by BloombergNEF, only 10% of the projected clean hydrogen production capacity for 2030 has buyers. BNEF has launched a database of hydrogen purchase agreements that tracks 149 agreements for clean and derived hydrogen purchases.
According to the BNEF database, only 13% of the contracted volume (or 1 million metric tons per year) is binding. Another 7% consists of pre-contractual agreements with a high likelihood of becoming binding contracts. The remaining 80% consists of memoranda of understanding or unspecified agreements. These agreements may take time to become binding, if they do at all.
Almost half of the contracted hydrogen volume will be supplied in the form of ammonia (NH3), a much more easily transportable gas than hydrogen. Among the buyers of ammonia are fertilizer companies and purchasers for export projects intending to use ammonia as a hydrogen carrier.
One-third of the contracted volume will be allocated to replacing “grey” hydrogen, which generates high emissions and is produced from fossil fuels, while emerging applications such as steel, energy, and fuels for heavy transport represent 20%. The remaining 43% of the contracted volume does not have a specified end use and is intended for export abroad.
Among the projects that identified end uses, the United States is the largest supplier, followed by China, Canada, Australia, and Spain. The majority of extraction capacity is allocated for domestic consumption, while 36% (2.8 million tons annually) is earmarked for export. This represents just over 10% of the projected clean hydrogen exports for 2030. South Korea and Europe are the primary destinations for these exports.
SOURCE: el periodico de la energÃa
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