The total global announced capacity for hydrogen projects reached 71.4 million tonnes per annum (Mtpa), but 2022 falls short of becoming a record year
KEY INSIGHTS
- Despite a record 12 Mtpa of project capacity announcements in the first quarter of 2022, the global hydrogen pipeline slowed through the year with only 1Mtpa of new projects announced in Q4 – falling short of total capacity announcements in 2021 by 3 Mtpa.
- Despite capacity announcements; Developers shifted their focus to de-risking the existing project pipeline
- The slow-down in project announcements was counterbalanced by record electrolyser manufacturing announcements. A record 45 gigawatt of renewable hydrogen electrolysers (GWe) was announced in Q4 2022,
- This takes the total announced nameplate electrolyser manufacturing capacity to 106GWe.
- THEÂ BREAKDOWN
- OEM chased the 360GWe pipeline with a record 83GWe in manufacturing announcements through 2022,
- With 45GWe of that electrolyser manufacturing capacity announced in Q4, up 72% from the previous quarter.
- 41GWe of the Q4 announcements were from gigafactories based in Africa.Â
- EXISTING PROJECTS PROGRESSING: There was a lack of mega projects announced in Q4 2022, but existing projects saw major progress:
-
For instance, Shell’s 200MWe ‘Holland Hydrogen I’ began construction in July. Â
-
BP also made headlines in May after announcing its purchase of a majority stake in the $70bn Asian Renewable Energy Hub (AREH).
-
In the US, the first mega-projects were announced including GHI’s ‘Hydrogen City’, which will add 3 Mtpa to the pipeline, and SoCalGas’ ‘Angeles Link’, adding a further 20 GWe.
-
BOTTOMLINE
Key Questions to ask are?
- Has Ukraine war and resulting perceptions on energy security and affordability impacted Energy Transition (speed & direction)?Â
- Would energy security extend the longevity of fossil fuels?
- Would investments in Blue hydrogen & CCUS outpace the the development of Green hydrogen?
- Does Energy security and affordability scenario vindicates path taken by US majors on of Shale gas, LNG and CCUS /blue Hydrogen?
- Chevron (CVX) & Exxon-Mobil (XOM) shun Wind/Solar; for them becoming electric power generation is option for Utilities
- For CVX/XOM, US oil companies are traditionally problem solver led by engineers they see emission as problems not oil & gas
- European oil companies, lacked oil & gas reserves have traditionally the traders mind-set dealing in alternatives
- Europeans need to better manage their energy security. With US becoming net exporter of oil and gas, the CCS/Blue Hydrogen will remain the major focus for emission reduction on this of Atlantic.
Â