Paul Perera’s Post

Hydrogen, called as the “fourth pillar” of China’s economy, following the country’s success in solar panels, electric vehicles and lithium-ion batteries, which accounted for 1 trillion yuan (US$138 billion) of exports last year and powered China’s 5.2 per cent gross domestic product growth. Green hydrogen, produced using renewable energy, can also help ease China’s solar and wind overcapacity issue. Last year, China added a record 301 gigawatts (GW) of renewable capacity, nearly 60 per cent of the global total. However, the country’s power infrastructure was unable to consume much of the generated power. One key issue for China to realise its hydrogen dream is probably demand. Although the demand for the fuel will be huge in the long term, the short-term outlook is uncertain because of the current high costs, scant application scenarios and lack of infrastructure to deliver the product to the end users. This could affect China’s plan for the subsidy-driven hydrogen economy. #hydrogen #greenhydrogen #sustainableenergy #newenergy #marketdevelopment #climatechangesolution

🌍🔋 The mainland will reach its green hydrogen target ahead of schedule, with annual production of 220,000 tonnes, far exceeding the sum of all countries worldwide. 🔍📅 #China, #greenhydrogen, #annualproduction, #nationaltarget, #RystadEnergy, #electrolysers, #hydrogenconsumer, #greenhydrogen2025, #FCVC2024 🌟🔋 Hong Kong's ‘South China Morning Post’ reported that the latest report released by Norwegian energy consultancy Rystad Energy on the 5th noted that mainland China has become the world's largest producer and consumer of hydrogen, with around 2.5 gigawatts of hydrogen electrolysers expected to be installed by the end of this year. The report estimates that mainland China can produce 220,000 tonnes of green hydrogen a year, 6,000 tonnes more than the rest of the world combined, exceeding the national target of 200,000 tonnes by 2025. 📊👥 ‘After 2040, the green hydrogen market will skyrocket because the levelised cost of green hydrogen will start to be the lowest of all production methods [in China],’ Nakanishi said at the International Hydrogen and Fuel Cell Vehicle Conference and Exhibition 2024 (FCVC 2024). 🔗📌 Details: https://bit.ly/3RbzcNN .

Asia is rapidly expanding its low-carbon hydrogen capacity to drive decarbonization across power, transport, and steel industries. With 12% of global feasibility projects and growing capacity, countries like China and India aim to lead in hydrogen technology, boosting sustainability and energy independence.

*** Largest upcoming hydrogen Projects in Asia *** • Asia has outlined the importance of low-carbon hydrogen in the energy transition due to its versatility in decarbonising a wide range of end use industries including power, transportation and other hard-to-abate sectors such as iron and steel and chemicals • It is pushing to develop low-carbon hydrogen production capacity and regional demand, as not only a pathway to a more sustainable future but a means to increase energy independence • In the case of China and India, they look to establish themselves as leaders of new energy technologies such as hydrogen, to capitalise on increasing global demand • The region currently has 130ktpa of low-carbon hydrogen capacity, however, its share of active capacity is set to increase as it accounts for 12% of global feasibility and post-feasibility projects • This highlights that despite feasibility projects accounting for 58% of Asia’s total capacity, a significant proportion of its projects are moving to later stages of development The chart below shows the largest upcoming Hydrogen projects in Asia #hydrogen #greenhydrogen #bluehydrogen #energytransition #netzero

Green hydrogen is booming in China. The Chinese green hydrogen industry is developing at an unprecedented pace, fueled by policy support and technological advancements. Costs are steadily declining, and technological innovations are expected to narrow the price gap between green hydrogen and coal-based hydrogen. ✅ Local subsidies and policy incentives have contributed to cost reductions and growth, with hydrogen projects exceeding RMB 410 billion in investment in 2023. ✅ Looking ahead, green hydrogen holds immense potential in chemicals, transportation, and other sectors, to facilitate a low-carbon energy transition. Infrastructure, such as hydrogen refueling stations & ports, is also developing rapidly. ✅ China's green hydrogen stands to be a pivotal force in driving sustainable development and global energy transformation. Click on the article for our full insights on it. #hydrogen #hydrogenenergy #greenhydrogen #newenergy #hydrogenfuture #hydrogenpower #hydrogenfuel

🚀 **U.S. Could Surpass China as Clean Hydrogen Leader** 🚀 The United States is on track to outpace China as the world's leading clean hydrogen producer as early as next year, according to BloombergNEF’s latest projections. 🌍🔋 Governments, including the U.S., are investing heavily in clean hydrogen, a key solution for reducing emissions in industries like steel, cement, shipping, and long-distance transport. Producing clean hydrogen from electrolysis using renewable energy or from natural gas with carbon capture and storage (CCS) is attracting significant investment in the U.S. 💰💡 Despite these advances, the U.S. is still not on track to meet its ambitious goal of producing 10 million metric tons annually by 2030. Current projections suggest reaching only 6 million metric tons by then. 📉 The U.S. holds a robust project pipeline, responsible for 87% of North America's clean hydrogen supply over the next six years. By next year, U.S. production could surpass China, which currently produces three times as much clean hydrogen. By the end of the decade, the U.S. might double China’s production. 🏆 However, China's future hydrogen production targets remain unclear, which could alter the competitive landscape. Additionally, U.S. projections depend heavily on federal guidance for tax credits under the 2022 Inflation Reduction Act. Final guidelines expected later this year will shape the future of U.S. hydrogen projects. 📜💼 Nearly 80% of the forecasted U.S. supply will come from natural gas with CCS, with major projects supported by generous tax credits. In contrast, the pipeline for renewable-powered electrolysis projects remains smaller, awaiting final government guidance. 🌱⚡ What are your thoughts on the future of clean hydrogen? How can the U.S. accelerate its progress? Share your insights! 🌟 #DrAlaaInsights #CleanHydrogen #RenewableEnergy #Sustainability #GreenTechnology #ClimateChange #CleanEnergy #Innovation #FutureOfEnergy #HydrogenEconomy 💧 Source: BloombergNEF: Hydrogen Supply Outlook 2024 • Clean hydrogen refers to production from electrolysis of water using renewable energy and from natural gas equipped with carbon capture and storage technology.

The International Energy Agency (IEA) has released a report highlighting significant growth in hydrogen project investments, despite ongoing industry challenges. Final investment decisions for hydrogen projects have doubled in the past year, with China leading the charge, accounting for over 40% of new projects. This growth rate surpasses even the fastest periods of solar expansion. However, the report also points out several obstacles facing the hydrogen industry: 1. Demand uncertainty: While production projects are increasing, demand targets only represent about a quarter of the planned production capacity. 2. Early-stage projects: Most hydrogen initiatives are still in their initial phases, facing various risks. 3. Unclear demand signals: The lack of concrete market demand creates uncertainty for investors and developers. 4. Financing hurdles: Securing funding for hydrogen projects remains challenging. 5. Regulatory uncertainties: The absence of clear regulations hinders further investment in the sector. 6. Licensing and permitting issues: Bureaucratic obstacles slow down project development. 7. Operational challenges: Technical and logistical difficulties in implementing hydrogen projects persist. The IEA emphasizes the need for policymakers and developers to focus on creating demand while reducing costs and establishing clear regulations to support further investment. Global hydrogen demand is expected to grow by around 3 million tonnes in 2024, primarily in the refining and chemical sectors. However, this growth is attributed more to broader economic trends rather than successful hydrogen-specific policies. Currently, the majority of hydrogen demand is met by production from unabated fossil fuels, with low-emissions hydrogen playing only a marginal role. The industry also faces technology and production cost pressures, particularly in the electrolyser sector, where higher prices and supply chain constraints have impacted progress. Cost reduction in the hydrogen sector relies heavily on technological advancements and achieving economies of scale. In conclusion, while the hydrogen industry is experiencing rapid investment growth, particularly in China, it still faces significant challenges in terms of demand creation, regulatory framework, and cost reduction. Addressing these issues will be crucial for the sector to play a meaningful role in achieving climate goals. Source:https://lnkd.in/deKAJkSr #hydrogen  #energy  #cleentech  #energyinvestment  #energy 

🐢 🐇 👀 These partnerships offer a glimpse of the growing interdependence between China and Middle East nations. Together, they have embarked on a journey to achieve net-zero emissions in the coming decades, joining more than 40 jurisdictions worldwide that have issued hydrogen strategies. China and the Middle East, though relatively new entrants compared with the European Union and the United States, are poised to grow their green hydrogen sectors. Middle Eastern countries have abundant renewable energy resources and capital to invest in the industry. China, meanwhile, has taken the lead on electrolyser deployment, controlling 50 per cent of global capacity at the end of last year, according to the International Energy Agency. Electrolysers are industrial devices used to separate the hydrogen and oxygen in water molecules.

Are we witnessing the same story what we saw in solar PV, this time probably little too soon. The global supply of electrolysers far outstrips demand from green hydrogen projects. China's fast and cheap manufacturing is enabling them to lead the way in electrolyser manufacturing. It's time for India to act fast to catch up and be a serious player in the electrolyser manufacturing industry. Meanwhile, green hydrogen production is facing slow growth due to sluggish demand and a lack of clarity on incentives in the US and EU. Despite the announcement of many projects, they haven't been able to achieve FID. If this continues, we might see a few bankruptcy declared by Western electrolyser manufacturers. Interesting to watch. #greenhydrogen #electrolyser #China #India #US #Europe #solar #climate #cleantech