Turquoise Transitions - DECARBONIZATION #2

 The world’s shift to cut carbon emissions dramatically and rapidly, and technological advancements have led to the promise of the “Green Hydrogen Economy”.

• Morgan Stanley sees as an $11 TRILLION hydrogen market in the coming decades.

• Key is directing hydrogen into the gaps in the economy, where direct electricity use isn’t feasible via fuel cells

• The trick will be investing in green hydrogen while accelerating investments in renewable energy, efficiency, and electrification in parallel. 

That means there will be a transition period.

Renewable energy water electrolysis cannot be the only first path to hydrogen

• Only about 17% of generated electricity is from renewable sources. To approach zero GHG emission and green hydrogen, the grid needs to be 100% renewable

• Storage and shipping of hydrogen difficult and expensive

• At 50 kWh electricity per kg hydrogen, and an electric rate of US$0.07/kWh is US$3.5/kg. This price is 31% higher than the national average price of diesel fuel (US$2.67/gal) and that assumes no operating costs other than electricity 

That means there will be a long transition period.

Methanol as a “Transition-Hydrogen Carrier” allows vast amounts of hydrogen to be made and distributed to the point of use – TURQUOISE HYDROGEN

· Efficient and low cost and mixed with water, methanol is easily converted to hydrogen and CO2.

· Methanol recently trading between about US$250/MT and US$300/MT (Europe, U.S., and Asia), yields hydrogen at a cost of US$1.91/kg to US$2.29/kg

· Over 95 billion liters of methanol are produced globally- most shipped chemical commodity.

· Net CO2 emissions are low to zero if the methanol is synthesized from renewable feedstock or from a natural gas flare.

· CO2 from fuel cell easy to capture.