Blue or Green Hydrogen

Blue hydrogen growth is likely to exceed  ” green H2 ” in the US as projects in the US are”  blue hydrogen ”  oriented i.e source being natural gas with the additional distinction of carbon capture. This is in stark contrast to  green H2 produced through renewable electricity and water electrolysis. Investments are near finalisation stage of blue hydrogen projects of 1.8 million tonnes annually compared to 200,000 tonnes of green hydrogen capacity . The gap in the US may be attributable to renewable and green H2 subsidies acquiring legislative approval recently whereas as early as 2008 blue projects had access to tax credit for carbon capture .Hydrogen fuels use is a step towards zero emission of  carbon dioxide, lowered nitrogen oxides and particulate matter .

Subsidies in US

Corporates in the US have multiple routes and  financial incentives for  subsidy per tonne of CO2  permanently stored or if the greenhouse gas is used for enhanced oil recovery or in other industrial processes and converting carbon dioxide to e-fuels or methanol .It is mandatory to  maintain emissions intensity below 1.5 kg of CO2-equivalent per kg of hydrogen produced  at $1/kg compared to around $0.75/kg if 95% of CO2 from the facility was captured and permanently stored. To progress to the second tier higher carbon capture rate, lower upstream and power emissions are required . Project economics play a vital role even if tax credits offset costs. The cost gap between green and blue is on account of natural gas being significantly cheaper in the US thus hydrogen produced from fossil gas is cheaper. As green hydrogen production is reliant on renewable energy to run the electrolysis process or the commercial availability  of sufficient hydrogen storage without imposing on grid electricity demand and the likely scenario of surge in electricity. In the US blue hydrogen has a distinct advantage over green in the perspective of storage and production on account of existing natural gas infrastructure amidst significant offtake by the refining and chemical sectors.

Fiscal incentives and tax credits

A  colossal investment is required for any meaningful shift to hydrogen as fuel from traditional fossil fuels.  The European Union has a mature carbon market regulated by EU’s Emissions Trading System which progressively lowers its upper limit on the number of emissions allowances annually to incentivise industries to decarbonise and is sustainable as compared to the tax credit mechanism prevailing in the US. The Netherlands plans to conduct a 1 billion Euro  auction for green hydrogen subsidies in 2024 aimed to generate 8 GW by the year 2032.

Climate Fund and scope for Developing countries

After recent legislation the US Department of Energy created a fund of around $ 7 billion to establish Regional Clean Hydrogen Hubs in order to encourage production, processing, delivery, storage and conversion to H2. Pilot projects and small scale hydrogen production are more likely to be visible in the short term.There is little scope for developing countries to be the recipient of such project based and internally oriented climate funds .

Hydrogen fuel for trains and Carbon Footprint

Trains are now increasingly powered by hydrogen fuel cells which produce electrical power for traction with the environmental outcome of zero-emission ,emission of low levels of noise and exhaust comprising mainly steam.China has pioneered Asia’s hydrogen train and Germany last year launched 14 hydrogen trains boasting a  maximum speed of 87 mph and a range of almost 620 miles. Not to be left behind in the green mantra the Indian Railways plans to operate 35 hydrogen trains on heritage theme routes.Expenditure estimates for a retrofitted train are $ 9.76 million and rail infrastructure around $ 8.5 million on each route .

Co2 Coalition and Pseudoscience

Dr. John F. Clauser, joint recipient of the 2022 Nobel Prize in Physics has criticized the climate emergency narrative terming it as journalistic pseudoscience.The world does not have a homogeneous global climate instead there are thirty climate zones and subzones.Nearly all have studied enough geography in school to appreciate that there is a wide variation in climate and such phenomena have been taking place since centuries. The world meteorological digital data is of around 50 years or less. Alarmist climate computer models spouting thousands of equations based on estimated and  hypothetical parameters are highly unreliable. Attributing flooding and droughts to climate change is merely racking up the climate change anti fossil fuel agenda. The proponents of the climate change doomsday scenario predict that the world is going to heat up by 2050.The Carbon Dioxide (Co2) Coalition view is that increased Co2 will sustain global life based on the Koppen climate classification depicted in a wide range of weather conditions in  different geographical zones with regular flooding and drought patterns being characteristic of certain areas.

Nobel Laureate John Clauser emphasizes on dramatic temperature-stabilizing feedback of clouds  , akin to a natural thermostat regulator, on the earth’s temperature the impact of which is immensely greater then any radiative compelling effect of CO2 .According to Nobel Laureate John Clauser  satellite photos contain conspicuous images of bright white clouds.Such dominant energy transportation process of clouds are produced by the evaporation of seawater by sunlight which partially shield the earth’s surface by reflecting sunlight energy, a dominant heat form, back into space .

The Co2 Coalition remains concerned that the Intergovernmental Panel on Climate Change and National Academy of Sciences admission that the effects of clouds cast a pall of uncertainty on computerized model based climate predictions has conveniently been ignored in the clamor of climate change alarmists  and misguided environmentalists.

US & China biggest emitters of GHS

China produces more greenhouse emissions ,  including carbon dioxide, methane and nitrous oxide,  than the rest of the world combined yet paradoxically produces more solar , wind power and electric cars than any single country. China signed the 2015 Paris Agreement on climate pledging to be carbon neutral by 2060. It banned the construction of new coal-fired power plants in 2016 but when the ban expired in 2018 construction of fresh coal powered plants commenced besides those it externally sponsored as part of its Belt and Road Initiative. Usage of vehicles in China is  around 240 million vehicles which is a dramatic rise from 27  million vehicles in 2004.

By Nadir Mumtaz