Latest news with #Section45V
Yahoo
25-07-2025
- Business
- Yahoo
Green Hydrogen Boom Fizzles as Projects Collapse Worldwide
Three weeks ago, U.S. President Donald Trump signed into law the 'One Big Beautiful Bill Act" (OBBBA)' that pretty much sounded the death knell for the nascent green hydrogen sector. Whereas OBBBA did not outright cancel the Section 45V clean hydrogen production tax credits as earlier feared, it did accelerate the deadline for projects to begin construction to be eligible for the credit, bringing the deadline forward to December 31, 2027 from January 1, 2033 as originally envisioned in Biden's Inflation Reduction Act (IRA) of 2022. Losing 45V tax credits is likely to seriously erode the economic viability of many hydrogen projects in the country, with Louisiana set to feel the heat the most. The state's 46 hydrogen and ammonia-related projects are currently eligible for the credits. Louisiana is home to some of the biggest hydrogen projects in the United States, including Clean Hydrogen Works' $7.5 billion ammonia and blue hydrogen projects as well as Air Products (NYSE:APD)' $4.5 billion blue hydrogen plant. However, OBBBA is not solely to blame for the stalling hydrogen sector, with dozens of green hydrogen developers across the globe scaling back investments or scrapping them altogether thanks to weak demand for the low-carbon fuel coupled with soaring production year, U.S. startup Hy Stor Energy canceled its reservation for over 1 gigawatt of electrolyzer capacity with Nel, a Norwegian electrolyzer manufacturer, for its Mississippi Clean Hydrogen Hub project. The company said the move was due to market headwinds and delays in bringing the project to fruition, making it financially unfeasible to make upcoming capacity reservation payments. However, Hy Stor said it was not canceling the hydrogen hub itself. Back in February, Allentown, Pennsylvania-based Air Products announced plans to cancel several green hydrogen projects in the U.S., including a $500 million facility in New York and a sustainable aviation fuel project in California. These decisions are part of the company's broader $3.1 billion write-down and are driven by challenging commercial and regulatory factors, including the need to strengthen the company's focus on projects that deliver value for shareholders. Not even Europe's energy heavyweights have been spared the carnage. Last year, we reported that Shell Plc. (NYSE:SHEL) had scrapped plans to build a low-carbon hydrogen plant in Norway citing lack of demand, days before Norway's NOC Equinor ASA (NYSE:EQNR) announced similar plans, "We haven't seen the market for blue hydrogen materialize and decided not to progress the project," a Shell spokesperson has told Reuters. BP Plc. (NYSE:BP) said in April that it was abandoning its hydrogen ambitions in favor of liquefied natural gas (LNG) for transport. This week, BP announced that it will exit the $36-billion green hydrogen production facility planned in Australia. BP has informed its Australian Renewable Energy Hub (AREH) partners that it will leave its role as the project's operator and equity holder. Last year, Spain's Iberdrola (OTCPK:IBDRY)(OTCPK:IBDSF), Europe's largest utility, said it would scale back its green hydrogen investments by almost two thirds due to funding delays for some projects. The company cut its 2030 production target to ~120,000 tons of green hydrogen a year, down from its previous goal of 350,000 tons. Luxembourg-based ArcelorMittal S.A. (NYSE:MT) has abandoned plans to convert two of its steel plants in Germany to hydrogen, despite the steelmaker being offered 1.3 billion euros in public subsidies for the 2.5 billion euro ($2.9 billion) project. Meanwhile, back in February, Spain's Repsol (OTCQX: REPYY) scaled back its 2030 green hydrogen production target, cutting it by as much as 63%. The company's new target is between 0.7 and 1.2 gigawatts (GW) of electrolyzer capacity, down from a previous goal of 1.9 GW. Repsol cited challenges in market development, regulatory uncertainties, and the high cost of green hydrogen production, particularly without subsidies. The Australian market has been hard hit, too. In September 2024, Woodside Energy (NYSE:WDS), the country's largest independent oil and gas producer, shelved plans to build two green hydrogen projects in Australia and New Zealand. In March this year, giant oil and commodities trader Trafigura, ditched plans to build a green hydrogen plant at the company's Port Pirie lead smelter in South Australia for A$750 million ($491.5 million). Meanwhile, the Queensland state government pulled the plug on plans to fund a A$12.5 billion green hydrogen plant by 2028, with the massive project slated to become one of Australia's largest and most advanced green hydrogen projects. Finally, Japan's Kawasaki Heavy Industries announced it will not go ahead with its coal-to-hydrogen project in Latrobe, Australia, citing time and cost pressures. The mounting cancellations suggest a sector still searching for viable economics, not just policy certainty. While OBBBA's accelerated tax credit deadline has undoubtedly raised the stakes for U.S. developers, the global pullback points to deeper market fractures: low offtake demand, high capital costs, and insufficient infrastructure. With major players in the U.S., Europe, and Australia walking away or scaling back, the once-hyped green hydrogen boom is looking more like a trickle. For now. By Alex Kimani for More Top Reads From this article on
Business Wire
03-07-2025
- Business
- Business Wire
Statement on the passage of the One Big Beautiful Act on behalf of Frank Wolak, President & CEO of the Fuel Cell and Hydrogen Energy Association (FCHEA)
WASHINGTON--(BUSINESS WIRE)--'As Congress passes the One Big Beautiful Bill Act today, FCHEA is proud to have played a central role in helping restore the critical Section 45V hydrogen production tax credit. We commend our incredible Senate champions – particularly Senators Shelly Moore Capito and Bill Cassidy – for recognizing hydrogen's unique potential to create jobs, drive investment, and strengthen our nation's energy security. By restoring this incentive and providing the U.S. hydrogen industry with the flexibility it needs to invest and grow, Congress has sent a clear signal that the United States is serious about competing in the global clean energy economy. Extending the commencement of construction date to January 2028 for the hydrogen production credit gives the industry an opportunity to advance a significant round of projects that will jump start the U.S. hydrogen market Share 'Extending the commencement of construction date to January 2028 for the hydrogen production credit gives the industry an opportunity to advance a significant round of projects that will jump start the U.S. hydrogen market, including the crucial Regional Hydrogen Hubs. 'The extension reflects the efforts of FCHEA and the coordination of organizations from multiple energy sectors who came together to support a reasonable, commonsense policy solution. The U.S. hydrogen sector now positioned to leverage this opportunity and advance American energy and manufacturing leadership.' The Fuel Cell & Hydrogen Energy Association (FCHEA) is the national industry association in the United States representing leading organizations advancing production, distribution, and use of innovative, clean, safe, and reliable hydrogen energy. For over 30 years FCHEA has provided a consistent industry voice to policymakers and regulators, driving support at the federal and state level. Our educational efforts promote the environmental and economic benefits of hydrogen energy and fuel cell technologies. Visit us online at
Yahoo
05-02-2025
- Business
- Yahoo
Pipelines are Most Lucrative Mode of Transport as Power Generation to Remain the Largest Consumer, Says Astute Analytica
Blue hydrogen emerges as the transitional key, leveraging abundant natural resources, high-tech refining processes, and established infrastructures, fueling robust industrial transformations while answering urgent calls for reduced carbon footprints worldwide. New Delhi, Feb. 05, 2025 (GLOBE NEWSWIRE) -- The global blue hydrogen market was valued at US$ 25.78 billion in 2024 and is anticipated to reach US$ 212.39 billion by 2050 at a CAGR of 19.50% during the forecast period 2025–2033. The blue hydrogen market continues to see significant investment from both private and public sectors, driven by the need for low-carbon energy solutions. In the United Kingdom, a final investment decision on the first blue hydrogen project is expected this year, with the project set to receive government subsidies. This commitment underscores the UK's dedication to advancing blue hydrogen as part of its clean energy strategy. In the United States, the Inflation Reduction Act (IRA) of 2022 has introduced crucial tax credits to stimulate the deployment of clean hydrogen technologies, including blue hydrogen. The IRA provides a Section 45V Tax Credit for clean hydrogen production and an enhanced Section 45Q Tax Credit for carbon sequestration, making blue hydrogen projects more financially viable and attractive to investors. Request Sample Pages @ On a global scale, major corporations in the blue hydrogen market are making substantial investments in blue hydrogen infrastructure. Air Products, for instance, is involved in a $4.5 billion blue hydrogen project in Louisiana, demonstrating a significant financial commitment to this technology. Additionally, the U.S. Department of Energy (DOE) has announced $7 billion in funding for clean hydrogen hubs, which include blue hydrogen projects. This funding is part of a broader strategy to develop hydrogen infrastructure and production capabilities across the nation. These investments highlight the strategic importance of blue hydrogen in achieving energy transition goals while addressing industrial emissions. The focus is not only on production but also on creating a robust supply chain, ensuring that blue hydrogen can play a significant role in the future energy landscape. Key Findings in Blue Hydrogen Market Market Forecast (2050) US$ 212.39 billion CAGR 19.50% Largest Region (2024) Middle East & Africa (35%) By Technology Steam Methane Reforming (63%) By Mode of Transport Pipeline (75%) By End Users Power Generation (39%) Top Drivers Accelerating carbon capture requirements among global energy sectors intensifying low-carbon solutions. Increased hydrogen demand due to heightened industrial decarbonization goals fueling adoption. Abundant natural gas availability enabling cost-competitive production routes in suitable regions. Top Trends Multi-sector collaborations creating robust integrated supply chains for large-scale hydrogen deployment. Advanced membrane technologies emerging for efficient separation in methane reformers worldwide. Retrofitting conventional petroleum infrastructures allowing flexible transitions toward hydrogen-based refinery operations. Top Challenges Limited carbon capture networks constraining large-scale deployment in many industrial hubs. Concerns about hydrogen embrittlement raising operational risks for high-pressure pipeline systems. High capital expenditures restricting smaller players from entering blue hydrogen markets. Applications of Blue Hydrogen in Energy-Intensive Industries and Beyond Blue hydrogen market is increasingly being adopted in energy-intensive industries as a cleaner alternative to traditional fossil fuels. In the oil refining and ammonia manufacturing sectors, blue hydrogen is being used to reduce feedstock emissions, presenting a near-term opportunity for decarbonization efforts. Heavy industries such as refineries, petrochemical plants, steel, and cement production are also exploring blue hydrogen as an enabler for reducing their carbon footprint. These industries are significant emitters of greenhouse gases, making the adoption of blue hydrogen a crucial step in their sustainability efforts. The application of blue hydrogen market extends to fertilizer and steel manufacturing, which are considered "no-regrets" applications due to their high energy demands and the potential for significant emissions reductions. In fact, more than 90% of the world's hydrogen, which includes blue hydrogen, is used for industrial applications such as lowering sulfur content in diesel by refiners. Beyond industrial applications, blue hydrogen is being explored in the transportation sector, with potential uses in fuel cell vehicles and as a transitional fuel in aviation. These diverse applications illustrate the versatility of blue hydrogen in addressing emissions across multiple sectors, positioning it as a cornerstone of the global energy transition. However, it's important to note that while blue hydrogen offers significant potential for emissions reduction, its overall environmental impact depends on the effectiveness of associated carbon capture and storage technologies. Current Developments in Blue Hydrogen Production and Carbon Capture The production in blue hydrogen market relies heavily on advancements in carbon capture and storage (CCS) technologies. Blue hydrogen is primarily produced through steam methane reforming (SMR) of natural gas, coupled with CCS to mitigate CO2 emissions. Recent technological advancements have seen the integration of autothermal reforming (ATR) with solid oxide electrolysis as a hybrid system for co-producing blue and green hydrogen, which is seen as a promising future energy source. This hybrid approach represents a significant step forward in hydrogen production technology, potentially offering greater efficiency and flexibility. In terms of production scale, global hydrogen production reached 90 million metric tons per annum in 2020, with a significant portion produced via SMR and coal gasification. However, less than 1% of this production involved CCS, highlighting the nascent stage of blue hydrogen projects. In the United States, blue hydrogen market projects produced 0.23 million metric tons of hydrogen in 2021, indicating ongoing efforts to scale up production. The effectiveness of CCS systems is crucial for the sustainability of blue hydrogen, as they must capture CO2 emissions efficiently over the long term to maintain the "blue" designation. While CCS technologies are available, their implementation in blue hydrogen production faces challenges. The learning rate for CCS, which measures cost reductions as technology scales, is reported to be 11% for capital costs and 22% for operating and maintenance costs. This suggests that while there is potential for cost reductions, significant technological breakthroughs are still needed. To address these challenges, policies like the Inflation Reduction Act in the U.S. provide tax credits to stimulate the deployment of clean hydrogen technologies, including CCS, aiming to lower cost barriers and promote large-scale blue hydrogen production. Contact us about this report before purchase: Transportation Modes for Blue Hydrogen and Associated Challenges Transporting blue hydrogen from production sites to end-users remains a significant challenge in the blue hydrogen market due to its low energy density and high flammability. Several transportation modes are currently being developed and utilized to address these challenges. Pipelines are a common method for transporting gaseous hydrogen, including blue hydrogen, particularly suitable for large-scale and long-distance transportation. Existing natural gas infrastructure can be repurposed for hydrogen transport, which can be cost-effective but requires careful consideration of hydrogen's properties, such as its tendency to cause embrittlement in certain materials. For long-distance transport, especially across oceans, cryogenic liquid tankers are being developed. This method involves cooling hydrogen to extremely low temperatures to liquefy it, which increases its energy density and makes it more efficient for long-distance transport. However, this process is energy-intensive and requires specialized infrastructure to maintain the low temperatures. An alternative method gaining attention is the use of ammonia as a carrier for hydrogen. Ammonia has a higher energy density than hydrogen and can be transported using existing infrastructure. Once at the destination, ammonia can be converted back into hydrogen in the blue hydrogen market. For shorter distances and smaller quantities, hydrogen can be transported in compressed form using tube trailers. This method is more flexible and can be used to supply hydrogen to areas not connected by pipelines. Each of these transportation modes has its advantages and challenges, and the choice of method often depends on factors such as distance, scale, and existing infrastructure. The development of these transportation technologies is crucial for the widespread adoption of blue hydrogen as a clean energy source. Technological Innovations Driving Efficiency in Blue Hydrogen Market Production Technological advancements are playing a pivotal role in improving the efficiency and sustainability of blue hydrogen production. Companies like Technip Energies have developed proprietary Auto Thermal Reforming (ATR) technology in partnership with Casale, which allows for large-capacity, ultra-blue hydrogen production with up to 99+ percent carbon capture rates. This technology is considered a game-changer as it breaks the upper capacity limit of traditional hydrogen plants. The integration of advanced carbon capture solutions is crucial for blue hydrogen production, with technologies achieving carbon capture rates of 99+ percent, significantly reducing the carbon footprint of hydrogen production. Innovations are also focused on reducing the levelized cost of hydrogen production. The BlueH2 by technology suite, for example, is designed to deliver the best possible levelized cost for blue hydrogen production, optimizing both capital and operational expenditures. These technological advancements are crucial for making blue hydrogen a viable and competitive option in the transition to a low-carbon energy future. They address key challenges such as cost, carbon capture efficiency, and integration with existing infrastructure, thereby enhancing the feasibility and attractiveness of blue hydrogen as a clean energy source. The U.S. Department of Energy (DOE) has set ambitious targets to reduce the cost of clean hydrogen to $1 per kilogram by 2030 through initiatives like the Hydrogen Energy Earthshot. However, achieving this cost target is challenging without tax incentives, as the production cost is heavily influenced by natural gas prices, inflation rates, and learning rates from technological advancements. Despite these challenges in the blue hydrogen market, several large-scale projects are underway that demonstrate the application of these innovations. For example, Exxon Mobil's Baytown project is set to be the world's largest blue hydrogen project, producing approximately 1 billion cubic feet of low-carbon hydrogen per day with significant CO2 capture. These projects and technological innovations are paving the way for blue hydrogen to play a significant role in the future energy landscape. Global Blue Hydrogen Market Major Players: Air Liquide Air Products and Chemicals, Inc. Engie Equinor ASA Exxon Mobil Corp. INOX Air Products Ltd. Iwatani Corp. Linde Plc Shell Group of Companies SOL Group Uniper SE Other Prominent Players Key Segmentation: By Technology Steam Methane Reforming Gas Partial Oxidation Auto Thermal Reforming By Transportation Mode Pipeline Cryogenic Liquid Tankers By Application Chemicals Refinery Power Generation Others By Region North America Europe Asia Pacific Middle East & Africa (MEA) South America Request a customized solution: About Astute Analytica Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us. Contact Us:Astute AnalyticaPhone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)For Sales Enquiries: sales@ LinkedIn | Twitter | YouTube CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: sales@ Website: in to access your portfolio
