Jack_Bolander
10 hours ago
mik - Maybe. But in the meantime, Cummins is a proven entity.
I rather go long with Best in Breed stocks like Cummins, Linde, and JM ; and Short poorly managed over-valued Companies like PLUG, NKLA, FCEL, HYZN,
PLUG is still a financially struggling poorly managed company until they can prove otherwise.
uksausage
11 hours ago
so doing some basic DD seems they have a financing strategy in place. interestingly using money from Spain… and it is $6Bn not $Bn..
Perth, Western Australia, 10 September 2024 - Perth based Affinity Capital Group, a leading specialist investment advisory house focused on providing capital that drives transformational outcomes globally, announces it has been appointed as lead manager and strategic advisor to Allied Green Ammonia (AGA) to raise the c.US$6.5 billion (~A$10 billion) in finance required for the development and construction of its world scale green hydrogen and ammonia facility based in Gove, Northern Territory, Australia.
AGA’s facility is planned to produce 486 tonnes per day of green hydrogen for an annual output of 960,000 tonnes of green ammonia onsite at Nhulunbuy, Gove Peninsula. The facility will harness abundant renewable energy resources and world leading energy infrastructure to generate 4.75GW per hour of solar electricity, to offer a strategic supply of sustainably produced, low carbon e-fuels to Australia’s key trading partners, which is seeing strong growing global demand.
The AGA facility will be one of the largest of its kind globally. Green hydrogen produced onsite will help decarbonise the ammonia production process by displacing Steam Methane Reforming techniques and provide a reliable and secure supply of green ammonia for the region whilst playing a meaningful role in avoiding an estimated 2 million tonnes of global carbon emissions annually.
The AGA team has consistently demonstrated an exceptional ability in project development, delivering over US$15 billion in large-scale projects across various geographic and industrial sectors and operating multiple major ammonia projects. AGA’s management team has utilised its extensive inhouse capabilities to complete AGA’s pre-FEED and the project feasibility studies, with positive results.
AGA has also secured key partnerships from leading global technology, engineering and infrastructure companies who will work with AGA to fast-track development, and is currently in negotiations for pre- approval for c.70% of the EPC contract value from the Spanish Government Export Credit Agency CESCE for the development of the project.
AGA has also signed an offtake MOU with World Leading Ammonia trading Company Trammo, France which is expecting delivery of first product in Q4 2028.
WeTheMarket
11 hours ago
JB, Henry Ma, of Accelera by Cummins (a leading engine and electrolyzer manufacturer with a long track record of projects around the world, and one of your favorite hydrogen companies), presented earlier today at the Mission Hydrogen webinar. Henry was very optimistic on the future of hydrogen, and expects the market for electrolyzers to grow substantially over the next 5 years (refer to the slides below).
WeTheMarket
1 day ago
jbs, thanks for posting the article. Don't take this personally, but I believe the article is very biased against hydrogen, as evidenced by the following inaccurate quote. I've posted here several times in the past that hydrogen achieves cost parity with fossil fuel at $6-7 per kilogram, not at half or one quarter of that. One kg of hydrogen has the same energy content as one gallon of gasoline, and hydrogen fuel cell vehicles are twice as efficient as gasoline ones, so hydrogen achieves price parity with gasoline when it costs as much as two gallons of gasoline or $6-7.
The article neglects the fact that service/maintenance costs are significantly lower for hydrogen fuel cell vehicles compared to internal combustion vehicles, which brings the total cost of ownership down. It also neglects the fact that hydrogen can be produced on site, and thus the transportation cost is eliminated, and storage costs are reduced.
"Currently hydrogen costs $3 to $7 per kilogram. A number of analyses expect that will be cut in half by the end of the decade and drop fourfold by 2050, which would make it become almost as cost-effective as fossil fuels, according to the researchers."
Link to article https://www.bloomberg.com/news/articles/2024-10-08/harvard-study-green-hydrogen-will-be-far-costlier-than-estimated
jbsliverer
1 day ago
Green Hydrogen Will Be Far Costlier Than Estimated, Harvard Scientists Find
Transporting and storing the gas are hidden costs that new research finds will make it uncompetitive as a decarbonization solution.
https://www.bloomberg.com/news/articles/2024-10-08/harvard-study-green-hydrogen-will-be-far-costlier-than-estimated?
By Sing Yee Ong
October 8, 2024 at 9:00 AM MDT
The actual cost of using green hydrogen, touted as a future low-carbon solution, is at risk of being higher than projected, according to a new study. That would limit its utility to effectively replace fossil fuels.
Significant storage and distribution costs — which are often overlooked by most cost estimates — will likely make hydrogen a “prohibitively expensive abatement strategy across many major sectors,” according to a paper by Harvard University researchers published Tuesday.
Hydrogen has been pitched as a tool to cut carbon emissions in industries like steelmaking as well as long-distance transport. But many governments and companies are pinning their green goals on the fuel eventually becoming an affordable option to decarbonize.
Currently hydrogen costs $3 to $7 per kilogram. A number of analyses expect that will be cut in half by the end of the decade and drop fourfold by 2050, which would make it become almost as cost-effective as fossil fuels, according to the researchers.
But production costs are only one aspect of hydrogen’s price. For most sectors, storage and distribution costs are one-third to half of the total delivered price, meaning “future reductions in production costs will only have a marginal impact on the overall price,” they added.
“Even if production costs decrease in line with predictions, storage and distribution costs will prevent hydrogen from being cost-competitive in many sectors,” said Roxana Shafiee, a postdoctoral fellow at Harvard’s Center for the Environment, adding that the study results challenge the idea of hydrogen being the “Swiss army knife of decarbonization.”
A growing number of countries are pushing to make hydrogen a key part of their emissions-cutting strategies, particularly for energy-intensive industries. The US has invested billions to kickstart hydrogen production with generous tax credits. In the EU, policymakers banking on the fuel and building power plants that are “hydrogen-ready” to meet ambitious climate goals, though transporting and storing the gas will involve costly upgrades at ports. Australia’s government will provide $5 billion in government incentives over the next decade, and Japan’s started a $20 billion hydrogen funding program.
But demand is lagging in the sector, with many hydrogen projects failing to find buyers stepping up to purchase the fuel. Only about 12% of production capacity planned to be commissioned by the end of the decade has currently an identified offtaker, and just a small percentage of those deals are binding, BloombergNEF said in a May report
. In recent months, the sector has seen projects spiked, as well as scaled-back investment plans as it grapples with high costs.
Read More: Almost Nobody Is Buying Hydrogen, Dashing Its Green Power Hopes
Hydrogen faces “a bit of a chicken and egg problem,” said BNEF analyst Kathy Gao. “For costs to come down, projects need to be deployed. If projects are deployed, demand can increase and costs can be pushed down. But we aren’t seeing that for hydrogen.”
While green hydrogen has high potential to play a role in decarbonizing sectors such as heavy transportation and industrial heating — both large sources of greenhouse gas emissions — it would be “premature” for the government to provide so much support for the gas “without also supporting alternative approaches,” the Harvard researchers said. Those include advanced biofuels and advanced battery storage, among others.
.
B_B!
2 days ago
These companies announce major hydrogen projects as environmental PR stunts and then cancel/delay them. In doing so, they try to deter (potential) investors in hydrogen, because if these wealthy and experienced oil/gas companies cannot get large hydrogen projects off the ground, who will?
B_B! Friday, July 12, 2024 Post# 57174
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174741748
B_B!
2 days ago
Seifi Ghasemi (80), the 'lifetime' CEO of Air Products, has been sabotaging succession planning.
Individuals like him undermine the potential of great companies.
Air Products (NYSE:APD) & Chemicals shares surged more than 7% Monday following reports that activist investor Mantle Ridge has built a more than $1 billion stake in the company, with plans to push for strategic changes.
According to The Wall Street Journal, Mantle Ridge, led by Paul Hilal, intends to focus on succession planning for long-time CEO Seifi Ghasemi and improvements to capital allocation and company strategy.
Author Sam Boughedda 08/10/2024
https://au.investing.com/news/stock-market-news/air-products-surges-on-mantle-ridge-stake-wall-street-upgrades-3475072
igotthemojo
5 days ago
"However, it has become clear that the hydrogen market is developing more slowly than anticipated"
this is the same conclusion that many are coming too...its just that some are a bit slower to realize that...when something is going to cost companies hundreds of billions of dollars and cost the Gov trillions of dollars, i dont know how in the hell anyone could have thought it would be done quickly???....i guess some must have thought that if you, LITERALLY threw money at a problem, that problem would somehow get fixed...smh
the whole idea of that money was to deal with climate change and help the world recover from the shitty way that we have treated it...to our detriment...but the vast majority of the people who were seeking that money, have that goal probably somewhere down around number 7 on their list of things to do with that money...the Gov and business pigs and hogs want to see how much they can stuff into their pockets first...then company coffers...then they will join alliances or collaborate with others to create groups that will hopefully be able to suck the most money out of the Gov...they will come up with ideas that may sound good or may even be ridiculous...who cares?..the Gov is giving away free money!...and who knows, maybe somewhere along the way some good will actually come of it...but not before they go after trillions more in round 2 of financing...
"and there remain risks and both input cost and technology advancements to overcome."
translation: the jig is up...the Gov is coming to the conclusion that throwing money at the problem may not actually be the solution...and some businesses are starting to see the writing on the wall...
and the 45v is another example of Gov regulators realizing that sending out corporate welfare checks may not be the solution...
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