The colors of Hydrogen
Hydrogen as an energy carrier can help drive the decarbonization of numerous industries and fight the effects of climate change. But in order to do that, one should choose the right color, among the (at least) 9 already existing colors.
New ways of producing continue to arrive, which are not yet colored like photoelectrolysis, plasmalysis of methane, or dark fermentation.
The real questions are: is my H2 renewable ? is my H2 Low Carbon ?
At Lune Ventures, we have the strategic experience to help you make the right choice for the right usage.
The rise of H2 projects
There has been a surge in industrial clean H2 projects over the last few years, thanks to significant reductions in the cost of production (blue and green) and distribution technologies. Additionnally, new policies such as the US Inflation Reduction Act and the EU RED III, have catalyzed the adoption on Low Carbon H2. At the end of 2023, more than 1300 projects are in the pipeline of H2 new production plants. However, only 10% of these projects have passed the FID (Final Investment Decision) stage. The total capacity of clean hydrogen that has passed the FID (including projects already operational) is around 3 Mt per year. More than 9 GW of electrolysis capacity has exceeded FID, with China accounting for 40% of that committed capacity.
At Lune Ventures, we have the experience to help you make the right choices for your H2 production or consumption projects.
Momentum is now
Low Carbon Hydrogen plays a major role towards achieving Paris Agreement goals.
EU is leading the way in taking the first steps in stimulating demand. It made the comitment to reduce GHG emissions by at least 55% in the EU by 2030 compared to 1990, with the development of clean H2 market. RED III boosts the offtake opportunities with RFNBO (Renewable Fuel of Non-Biological Origin).
20 Mta of renewable H2 will be consumed in EU by 2030 (10 Mta produced and 10 Mta imported), with 40 GW of renewable hydrogen electrolysers installed by this date. 33 energy infrastructure operators collaborate to build a wide European H2 backbone by 2040.
At Lune Ventures, we have this overview to optimize your projects.
