French utility claims that green hydrogen costs will match LNG in ten years

According to Europe’s largest operator of gas infrastructure, the cost of clean hydrogen will drop to liquefied natural gasoline in a decade.

In an interview, Thomas Baudlot, chief executive of Engie’s energy solutions for Asia-Pacific, stated that green hydrogen is not economically competitive with other energy sources today. Engie’s strategy includes fuel.

In a world where there is a growing interest in hydrogen, it is becoming increasingly popular. Hydrogen is green when it is produced using electricity from renewable sources like wind and solar. After Russia’s invasion in Ukraine in February, fuel supplies were cut and prices increased. BloombergNEF reports that while the technology is still in its infancy, 35 countries have a hydrogen program and 17 are working on one. This will help to reduce the cost of electrolyzers required to make the fuel.

Asia is seeing a rise in demand for renewable energy as a way to replace expensive fossil fuels. Engie’s Asia expansion includes marketing green hydrogen to customers. Australia will be the region’s production center.

Baudot stated, “We used to call clients.” “Nowadays, the clients call me. They want to move faster and larger.

Engine made its final investment decision last month in the Yuri project for renewable hydrogen in Western Australia’s Pilbara region. The first phase is expected to be completed by 2024. Baudot stated that Engie is also considering expansion in Malaysia and the Philippines, thanks to favorable regulations.

He said that liquefying hydrogen is a “dilemma”, as it requires a lot of energy. According to the U.S. Department of Energy, the process is costly and consumes more than 30% of the fuel’s energy. It is also lighter than LNG so it would be difficult to transport at large scale without new infrastructure and technology.

BloombergNEF anticipates that the cost of transporting and liquefying green hydrogen from Australia will be $30 per million British thermal units by the end of this decade. This is almost three times the cost of similar LNG shipping from Australia under a long-term contract, but not much more than current spot rates.

Baudot stated that “we can’t afford not to rule it out.” It’s important that we invest in all media. Natural selection will occur once these are more advanced.