The second and final day of the Energy Exports Conference is well under way with sessions discussing industry issues ranging from hydrogen and wind power to nuclear and decarbonisation.
Held in Aberdeen at P&J Live, EEC23 has united supply chain companies and operators from across the globe, fostering meaningful discussions and inspiring collaborations in the energy sector.
Notably, we were pleased to welcome distinguished guests from aramco and ADNOC Group.
Here are important points from this morning’s session on hydrogen made by host Stuart Broadley, CEO of the Energy Industries Council (EIC), and speakers: Madana Nallappan, Ph.D., Regional Analyst, EIC, Nigel Holmes, CEO of Scottish Hydrogen & Fuel Cell Association, Guy Doyle, Chief Economist, Energy, at Mott MacDonald, and Stuart Turl, Decarbonisation Director at Wood.
Hydrogen Production Projects and Investor Confidence
Recent data reveals that only a mere 5.4% of the announced hydrogen production projects have achieved Final Investment Decision (FID). While this primarily comprises green hydrogen initiatives, it is essential to note that only one blue hydrogen project has successfully reached FID. To propel the hydrogen sector forward, a demand stimulus is required. This will not only increase offtake but also enhance investor confidence, fostering sustainable growth within the industry.
Unlocking the Potential: Incentives and Mandates
Currently, some companies are exploring the transformation of grey hydrogen into cleaner alternatives through the processes of "greening" or "blueing." But the true potential of clean hydrogen can be realised by implementing appropriate incentives, such as carbon credits, or mandates that encourage companies to replace a portion of grey hydrogen with green or blue hydrogen. These measures have the potential to substantially increase the demand for clean hydrogen, marking a significant step forward for a sustainable energy future.
COP 28 and Future Discussions
As the global community gears up for COP28, the upcoming United Nations Climate Change Conference, it is imperative to consider the role of mandates in driving the hydrogen sector forward. Could COP28 be the platform where discussions about these mandates take place, charting a path towards a greener and more sustainable future?
Driving Demand: Hydrogen Infrastructure Development
While it's true that some sceptics argue there is currently no significant demand for hydrogen, Germany is an example of a country that is taking proactive steps to stimulate its adoption. In Germany, hydrogen stations are being established to cultivate demand and create a robust ecosystem.
Mahmoud Habboush
Communications Advisor at the Energy Industries Council (EIC)