Seven big big names in renewables have clubbed together in a United Nations-backed moonshot to get green hydrogen prices down by 50% to $2 per kg by 2026, while scaling up production 50-fold.
Iberdrola, Ørsted, ACWA Power, CWP Renewables, Envision, Yara and Snam are onboard the ambitious bid to make green hydrogen a more mainstream fuel choice this decade.
The so called Green Hydrogen Catapult will require an investment of approximately $110bn and will generate more than 120,000 jobs.
The key issue here is to close the competitiveness gap between traditional fossil fuels and new zero emission fuels
“Scaling up green hydrogen using existing infrastructure will be crucial to reaching climate goals,” commented Marco Alverà, CEO of Snam. “We believe that this new coalition of the willing composed of leading companies in the private sector, with expertise, commitment and confidence in hydrogen’s potential, will play an important role in fostering cooperation and help to deliver the projects necessary to bring green hydrogen costs to the $2/kg tipping point even sooner than expected.”
For shipping companies to take part in this new fuel, they will need vessel design breakthroughs soon as well as a rethink of how they buy fuel. Shipping would need to start thinking about signing long-term off take agreements, much further in advance than they are used to in current annual bunker contacts.
This year the shipping industry’s Getting to Zero Coalition began mapping some of the many zero emission pilots and demonstration projects going on around the world, with hydrogen research leading the way in one form or another in shipping’s pursuit of a clean fuel.
Kasper Søgaard, head of research at the Global Maritime Forum, commented at the launch of the global zero emission study in August: “The majority of projects covering fuel production focus on green hydrogen which is largely due to hydrogen’s position as a building block for the production of other fuels such as ammonia or methanol. Much of what needs to be achieved is already technically possible. The key issue here is to close the competitiveness gap between traditional fossil fuels and new zero emission fuels.”