Itโs an old joke but one that hits close to home for anyone following the hydrogen space. Yesterday, I listened to one of the clearest, most insightful podcast episodes on hydrogen yet. Yoann Berno sat down with Ben James, who delivered a simple yet razor-sharp explanation of hydrogen's role in the energy transition.
๐๐ฒ๐ฟ๐ฒโ๐ ๐บ๐ ๐บ๐ฎ๐ถ๐ป ๐๐ฎ๐ธ๐ฒ๐ฎ๐๐ฎ๐:โจ
Hydrogen isnโt just about science or policy. Like real estate, there are three main criteria for project success: ๐น๐ผ๐ฐ๐ฎ๐๐ถ๐ผ๐ป, ๐น๐ผ๐ฐ๐ฎ๐๐ถ๐ผ๐ป, ๐ฎ๐ป๐ฑ ๐น๐ผ๐ฐ๐ฎ๐๐ถ๐ผ๐ป.
๐ช๐ต๐ ๐น๐ผ๐ฐ๐ฎ๐๐ถ๐ผ๐ป ๐บ๐ฎ๐๐๐ฒ๐ฟ๐:
โข ๐๐ป๐ฒ๐ฟ๐ด๐ ๐ฐ๐ผ๐๐๐ ๐ฑ๐ผ๐บ๐ถ๐ป๐ฎ๐๐ฒ: Half the cost of green hydrogen comes from electricity. Producing 1 kg of green hydrogen requires about 50 kWh. If you want that kilogram to cost $1, you need electricity at 1.5 cents per kWh. So you need to locate your hydrogen production closer to the cheapest energy source you can find.
โข ๐ง๐ฟ๐ฎ๐ป๐๐ฝ๐ผ๐ฟ๐ ๐ธ๐ถ๐น๐น๐ ๐บ๐ฎ๐ฟ๐ด๐ถ๐ป๐: Hydrogen is notoriously tricky (read: expensive) to transport. Unless youโre making ammonia for local fertilizer markets, youโre likely better off producing hydrogen near the point of consumption. But first, check if there is a cheap energy source nearby.
Projects like ATOME, led by Olivier Mussat, whom I've interviewed for my own podcast, get this right. They focus on areas with ultra-cheap renewable energy and local demand for ammonia. The result? Reduced shipping costs and a business model that stands a chance in the real world.
Hydrogen projects that overlook energy costs or transport constraints arenโt likely to succeedโunless, of course, their investors are obscenely rich and love burning cash.
๐ง If you want 24 minutes of pure hydrogen clarity, I highly recommend the episode of The Climate Insiders with Yoann Berno and Ben James. โจโจAnd if youโre navigating green hydrogen projects or energy transitions, letโs chat. Follow me here and check out my website for more insights into cleantech and scaling innovative businesses.