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Andrew marsh plug power12/9/2023 It reduces the cost of infrastructure, and we have done smaller sites and we're beginning to do more. ![]() But the acquisition of ACT and the trailers - having controllers of our trailers actually makes smaller hydrogen facilities simpler. Is that still an objective? And would that - or how would that expand the market opportunity?Īnd I don't talk about this much, Eric. I know something that you've talked about for years is potentially expanding to smaller locations for materials handling. So all the talk of the PTC and cost of hydrogen coming down. That said, on the Q2 conference call, management expected the ramp of small scale solutions to be more of a 2025, 2026 issue anyway: Without additional customers in close proximity, the underutilization of service technicians would result in additional margin pressures. This results in the requirement to have permanent service technicians at customer locations. Remember, the fuel cell units require constant maintenance and Plug Power usually provides an uptime warranty. Depending on customer locations, this issue could result in inefficiencies to the company's logistics operations or even the requirement for third party hydrogen supply.ģ) Service. Smaller storage solutions should help to reduce overall system costs but likely require the company to supply hydrogen at a similar frequency when compared to its larger customers. That said, there are several issues with the new offering.ġ) Likely requirement to provide even more lease financing as smaller customers can't shoulder the initial capex required.Ģ) Hydrogen logistics. economy to cut CO2 emissions by 40% by 2030.Joking aside, the new smaller-scale offering is unlikely to result in additional warrant issuances and once the company is starting to generate sufficient amounts of green hydrogen, the margin drag from third party hydrogen supply should start to come down. If the law succeeds, it will go a long way to decarbonize the hard-to-abate sectors. Green hydrogen is closer than ever because the cost of wind and solar energy is falling - something the Inflation Reduction Act will hopefully expedite. “Large-scale hydrogen production facilities are to be built (in Germany) for the purpose of decarbonizing steel production.” “We need ‘green electrons’ and ‘green molecules’ if we want to achieve the proclaimed climate protection objectives,” adds Klaus-Dieter Maubach, chief executive of Germany-based Uniper SE, which is developing two green hydrogen projects: one will convert green ammonia back to hydrogen, and the other will use an electrolysis plant. But it must fall to between $0.8 and $1.6 a kilogram to advance. Hydrogen produced from wind and solar is now at least $2.50 a kilogram. It is spending $33 million on electrolyzers in Germany, and that will help build economies of scale - the kind that could drive down the cost of hydrogen produced from wind and solar and make it comparable to natural gas. “Green hydrogen and its derivatives play a key role for the chemical industry, both as an alternative feedstock and a source of clean energy,” says Markus Steilemann, chief executive of Covestro.īut priming the pump will take time, says Siemens. However, it must expand into transport, buildings, and power generation to make an even bigger footprint. Hydrogen is widely used today in oil refining and the production of fertilizers. The company wants to show that the decarbonization of heavy industry is doable. FFI is also building one of the largest electrolyzer factories in the world in Australia - the traditional way to split hydrogen and oxygen. Under its chairman, Andrew Forrest, FFI wants to grow it to 15 million tons of green hydrogen annually by 2030 and ultimately expand that to 50 million tons annually. ![]() FFI will supply up to 100,000 tons of green hydrogen equivalent annually, starting as early as 2024. Indeed, that’s what Fortescue Future Industries (FFI) is doing with German polymer-maker Covestro. To that end, green hydrogen and its derivative green ammonia will play a prominent part especially for heavy industry and the transport sector. The Inflation Reduction Act is good for the United States, which is a party to the Paris climate agreement. So they are not against allocating money to achieve a positive result - only new monies targeted to green technologies. However, they applauded the Trump administration when it spent $2 trillion to fire up the American economy during the height of Covid19. They also oppose more government spending. ![]() Critics say that Congress should put more energy into developing domestic oil and natural gas.
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