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I'm currently in the LNG space and I'm thinking of moving to hydrogen/power someday. Definitely the future
How does that work? Do you trade the power generated by hydrogen basically? Is it the same concept as trading say wind or water energy?
There are some energy density issues but blue and green hydrogen can presumably be transported as fuels, truck/rail/ship/pipeline.
It sounds like most of discussion is around powering vehicles since it is difficult to extract. Currently the two main methods of extraction are from natural gas & electrolysis. Burning natural gas to get hydrogen is scalable and is our main method at the moment, but does not provide any emissions benefits. Electrolysis is energy heavy and difficult to scale. The only real way for hydrogen to be a net positive on the environmental front is to use renewable energy during the process.
I can't imagine hydrogen displaces natural gas as a source of electricity generation. In addition to being difficult to create, it is the lightest gas and is difficult to transport/store. Hydrogen is an expensive and challenging alternative to electric vehicles.
Hydrogen....the holy grail
It WILL be the future. The real question is 10 years, 30 years, 50 years?
Spot market pricing does exist, but it is initially looks like propane market (Conway, Mt Belvieu, etc). Platts is trying to put together indices that matter. Only time will tell.
On the wholesale market side, you are going to need many more producers and non-auto consumers to enter into the market to create enough liquidity to make it work.
From the power side, check out LADWAP and Intermountain project. That is the real bellwether, and first real test, to see if the technology LCOE will drop over time as comparable to other recent technologies (Solar / Wind / Battery).
Economic storage, non-truck transportation, LNG, etc., must be overcome before we even think about using NG pipes with a 5% Hydrogen injection.
Also, the mandates for Blue,Green and even Brown Hydrogen will also be important. Using coal,waste, biomass with CCS i much easier than a 100% reliable solar / wind Electrolyzer.
Anyone who thinks that automotive fuel cells is the answer (minus fleet vehicles) is delusional in the near future.
Namaste.
D.O.U.G.
Great stuff thank you. Yeah green hydrogen looks awfully far off but blue hydrogen could be pretty crucial in terms of the transition to renewables, provided of course those issues you list get resolved.
Kind of hoping a corner of the energy market subsists for those less quant focused than your typical power/natty screen trader.
NatGas is the future for the next couple decades
This is great information.
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