By Co-Chairs Roger Ballentine, President of Green Strategies, Inc. and John Flory, President of Clean Hydrogen Buyers Alliance.
To read the full report, follow this link https://www.ch2ba.org/executive-summary
Rumors of the death of clean hydrogen have been greatly exaggerated. Federal policy retrenchment is not the same as the loss of market fundamentals – and even with policy support, a sector cannot be sustained without market fundamentals, including demand and the appetite of capital. While it is true that the cost of lower carbon intensity hydrogen is greater than the default higher CI option, evidence suggests that demand is significantly greater than supply. Committed investment in clean hydrogen has now surpassed $110 billion across 510 projects, up $35 billion from last year and growing at over 50% year-over-year since 2020.
To date, the hydrogen marketplace has not learned the lessons of natural gas, which through the Henry Hub pricing benchmark became a globally traded commodity. In our paper (linked in the Edward Morse post below) we propose an index for hydrogen centered not only on location and physical specifications but also on carbon intensity. Evolving hydrogen from a specialty gas priced bilaterally in bespoke transactions to a true and transparently priced commodity is critical to bringing liquidity and capital into this market.
It was a privilege over the last year to Co-Chair the Clean Hydrogen Transaction Advisory Committee with Edward Morse Morse, one of the world’s leading authorities on commodities and energy markets, and to work with other innovative market leaders like John Flory and Michael Prokop. We were convened by the Clean Hydrogen Buyers Alliance and we will continue to push to fulfill clean hydrogen’s potential to contribute to decarbonizing the energy sector.
