IPE Real Assets 18/09/2023
"(...) Buddenbaum joined panel members Robert Arnold, sustainability research director at EDHEC-Risk Climate Impact Institute, Tom Houghton, partner at ERM, and Art Pithayachariyakul, Sustainable Energies principal at CPP Investments.
Hydrogen is a versatile tool for decarbonising the energy system, but its role will vary depending on a country’s existing infrastructure, Arnold said, countries with well-developed gas and oil infrastructure, such as the Netherlands and the UK, are in a good position to deploy hydrogen for a variety of uses. Countries with less developed infrastructure may need to focus on more specific applications, such as synthetic fuels or the chemical industry.
”The growth of the hydrogen market will depend on whether it is supply-driven or demand-driven.” Blue hydrogen, which is produced from natural gas using carbon capture and storage, is a relatively early and high-volume source of hydrogen. However, it is not possible to produce blue hydrogen everywhere in the world, he added.
Arnold said investors must carefully consider where to direct their investments in the hydrogen sector, given the many possibilities and the varying strengths of different locations. “I think in some ways hydrogen is a victim of its own potential success and versatility that you have so many possibilities at the moment,” he said. “But actually, it’s trying to identify where those possibilities play out and what the strengths are in different locations that will define where you’re going to put your money (...)"
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