SOLAR AND CLEAN FUELS GREEN HYDROGEN
We need broader understanding of the systemic role that hydrogen plays in any future clean energy system. Too many people still think it is a nice to have and not essential. “
purchase natural gas on global markets as an alternative to Russian gas. This entity, AggregateEU, could be operationalized for the purchasing of green hydrogen, for example using the mechanisms designed and tested by the German entity H2global. Lastly, the European hydrogen bank has successfully carried out inner-European auctions for hydrogen, and this could be applied internationally, using the mechanisms championed by H2 global and AggregateEU. From a commercial perspective, how might a strategic reserve impact hydrogen pricing and the bankability of green hydrogen projects? If we kickstart a market, over time prices are expected to go down due to economies of scale and increased competition. Having a large initial off taker, a strategic reserve, serves to kickstart this market. Since the strategic reserve has sovereign backing, bankability should be guaranteed. How do you see hydrogen storage infrastructure contributing to energy security and resilience in the face of geopolitical and economic uncertainties? The primary nature of a strategic reserve is to provide energy security and reduce price shocks. So, it is, by definition, a buffer against geopolitical and economic uncertainties. Looking ahead, what milestones or developments would signal that the global hydrogen market is moving toward maturity and commercial scalability?
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First, I think we need broader understanding of the systemic role that hydrogen plays in any future clean energy system. Too many people still think it is a nice to have and not essential. Because molecules play such an important and crucial role in our current and future energy system, unless we introduce clean molecules such as hydrogen, we will remain with polluting hydrocarbons. So that is number one, we need more awareness. One of the issues in the energy transition is that we don’t price external costs of pollution into our energy carriers. A study published earlier this year by Harvard economist Bilal Hammoudi, calculated the social cost of carbon emissions to be more than $1000 per ton. [1] This figure starkly contrasts with earlier estimates. Unfortunately, 75% of all global emissions are free, making it difficult for cleaner alternatives to replace conventional energy carriers. Pricing carbon fairly would Level the playing field and make the introduction of clean hydrogen into our energy systems much easier .
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THE FUTURE OF ENERGY
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