Hydrogen Update - Oct 26
Posted: Mon Oct 26, 2020 9:41 am
From time to time I am asked if hydrogen is the next "Big Thing" that will replace the energy we get from hydrocarbons. Below are comments from Stifel.
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What We Know and Don't Know After Seven Hydrogen Expert Conference Calls - Benjamin J. Nolan an energy sector analyst at Stifel
"We have now hosted seven conference calls with hydrogen experts from industry, academia, and government. This report includes many of the things we have learned, but equally important the unanswered questions and disparate views of hydrogen development. Our overarching takeaways are that:
1) hydrogen development will not happen without the financial support of governments due to high initial costs,
2) in many locations that support and will is materializing and thus we do anticipate rapid progress and market share gains by hydrogen,
3) technological innovation is still a major question mark and clear winner on either production of hydrogen or consumption remain a mystery,
4) it is hard to invest in hydrogen themes as most public companies are either very immature and risky or hydrogen is a tiny portion of a much larger operation, and
5) large scale adaptation is at least a decade if not several decades out.
Despite the challenges, hydrogen leveraging renewable wind and solar is likely the most promising path to decarbonization.
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MY TAKE: Yes, hydrogen has a lot of energy and there is a lot of it. But .... I will be dead before it has an impact on demand for natural gas and it is almost no threat to oil demand.
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What We Know and Don't Know After Seven Hydrogen Expert Conference Calls - Benjamin J. Nolan an energy sector analyst at Stifel
"We have now hosted seven conference calls with hydrogen experts from industry, academia, and government. This report includes many of the things we have learned, but equally important the unanswered questions and disparate views of hydrogen development. Our overarching takeaways are that:
1) hydrogen development will not happen without the financial support of governments due to high initial costs,
2) in many locations that support and will is materializing and thus we do anticipate rapid progress and market share gains by hydrogen,
3) technological innovation is still a major question mark and clear winner on either production of hydrogen or consumption remain a mystery,
4) it is hard to invest in hydrogen themes as most public companies are either very immature and risky or hydrogen is a tiny portion of a much larger operation, and
5) large scale adaptation is at least a decade if not several decades out.
Despite the challenges, hydrogen leveraging renewable wind and solar is likely the most promising path to decarbonization.
----------------------------
MY TAKE: Yes, hydrogen has a lot of energy and there is a lot of it. But .... I will be dead before it has an impact on demand for natural gas and it is almost no threat to oil demand.