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In the first half of this pair of articles on the challenges of internecine squabbling among those focused on replacing fossil fuels, I covered the $39 trillion worth of reasons why the fossil fuel industry is trying incredibly hard to pretend that it has a future as an energy delivery industry, why electrification is the answer to almost everything, and why biofuels are the answers to what electricity can’t do.

Now it’s time for hydrogen and synthetic fuels.


Hydrogen

Next we have hydrogen. Hydrogen is indeed the most abundant element in the universe, however, the thing that isn’t said clearly is that it’s tightly chemically bound to other things, and doesn’t float around freely in a harvestable form. And it does indeed have a high energy density by mass, but unfortunately it has a terrible energy density by volume, which more than counterbalances the mass side of the equation. We have to get it from fossil fuels, which are, after all, hydrocarbons, or from water, which is two hydrogens and an oxygen. Both of those things require a lot of energy, and there are a bunch of negative externalities for several of the processes.

First off, there’s black, gray, and blue hydrogen. About 99% of all hydrogen created and used today comes from fossil fuels, and it’s black. Making hydrogen from natural gas produces 10x the mass of CO2 as of produced hydrogen. Making hydrogen from coal produces 20–35x the mass of CO2 as of hydrogen. End to end, because of process efficiencies, methane leakage, and the like, more greenhouse gases are created for the energy in hydrogen than if we just used the fossil fuels directly.

The false promise of blue hydrogen is that all of those negative externalities will be centralized into a gas reformation or coal gasification facility, where the CO2 can be captured as it is emitted, and the chemical and particulate pollution can be scrubbed sufficiently from the effluents. The $39 trillion in profits fossil fuel industry really, really loves this, because it means that they can keep an enormous amount of their revenue and profits, as long as someone else pays for the capture and sequestration of the CO2 and other pollutants. As a result, there’s an awful lot of fossil fuel money and lobbying pushing hard for a hydrogen economy.

And as stated, carbon capture and sequestration is a money pit of extremely limited value. 50 years of investment in CCS has resulted in the biggest CCS ‘wins’ pumping CO2 out of the ground in one place and pumping it back into the ground in another, typically with lots of government money, and almost entirely for enhanced oil recovery, which produces more CO2 than was sequestered. The total scale of all carbon capture and use globally is five to seven orders of magnitude off the scale of our CO2 emissions problem. Making hydrogen from fossil fuels just makes the CO2 emissions higher, and the scale problem just gets worse. You can understand why the fossil fuel industry doesn’t like that part of the story being told.

The second form of hydrogen is green hydrogen. In this pathway, renewable electricity is used to electrolyze water into hydrogen and oxygen, putting energy in to break the chemical bonds and get hydrogen out. Then the hydrogen can be compressed to ten thousand pounds per square inch to get it down to a usable volume, or chilled to 24 degrees above absolute zero to turn it into a somewhat manageable liquid.

Hydrogen burns fairly cleanly, combusting with oxygen to make water again. However, burning hydrogen creates the nitrous oxides mentioned above, as burning anything in our atmosphere does. That’s because nitrogen is 78% of the atmosphere and oxygen is 21%. Burning anything releases heat and causes the nitrogen and oxygen from the air to combine in various ways, with the associated negative externalities of smog-precursors and high global warming potential gases.

Hydrogen fuel cells are like electrolyzers run in reverse. Instead of burning hydrogen, you run it through the cell, recombine it with oxygen and get some energy and waste heat from the process, but without nitrous oxides, which is nice.

The problem with green hydrogen is that it’s both inefficient and ineffective. Creating hydrogen from water loses at minimum 20% of the energy required for the process. Compressing and/or chilling it loses more. Transporting it is inefficient, with piping it, for example, taking three times the energy as for natural gas. When it’s burned, it’s like fossil fuels in that we get relatively low grade heat back, which means waste heat and entropy. Burning it for heat produces nitrous oxides still, and unless you directly need heat, converting it to electricity has a bunch of losses. Hydrogen fuel cells produce waste heat and at best are 60% efficient at getting the remaining energy out.

Hydrogen has some other problems for distribution. It embrittles harder steels, so a lot of existing pipelines and pumps can’t be reused and would have to be replaced at great expense. And electronics don’t like hydrogen much, so in many places the electronics for monitoring and controlling distribution have to be replaced too. And for use, hydrogen doesn’t directly replace natural gas in appliances, so brand new appliances — which don’t exist as manufactured commodity items today, by the way — must be purchased and installed.

Electricity turns into heat or mechanical energy for motion very efficiently. But the same ‘energy’ of heat, unless it’s extremely hot, doesn’t turn into mechanical energy efficiently. The technical term is exergy, which is the percentage of the energy in something which can actually be usefully used. Low grade heat has poor exergy, while electricity has high exergy.

Electrification types, like me, point out that all of that inefficiency and ineffectiveness is avoided by using the electricity from renewables more directly. Tie things to the grid wherever that’s possible — and there close to 100,000 kilometers of electrified rail in the world, for example — and use batteries which are 80%+ efficient and very easy to charge from ubiquitous wires we already have in place. Use electric heat pumps and induction stove tops and electric arc furnaces for all the things we need heat from.

What this comes down to is that hydrogen isn’t fit for purpose directly for virtually any transportation form, to burn for heat of any quality, or for grid storage of electricity. Its inefficiencies and effectiveness challenges compared to electrification or biofuels mean that it’s unlikely to be used directly.

That’s okay, by the way, because we need green hydrogen for fertilizer and other chemical processes. But using it for heat, storage, or transportation makes no sense.

And here’s another source of confusion and contention. Green hydrogen is being deployed as a bait and switch for blue hydrogen. The fossil fuel industry is telling everyone who will listen, and politicians who are often happy to take their money, that if we just use black hydrogen for heating and transportation now, they’ll make it blue soon with a lot of taxpayer money, and then eventually we can have green hydrogen economy.

It’s a massive delaying tactic and governmental money grab by the fossil fuel industry.

Of course, there are the other people, the ones who read Rifkin’s Hydrogen Economy in 2000 or so, and never did the math. There are a lot of people heavily intellectually and fiscally invested in the hydrogen economy, and they spend a lot of time advocating for hydrogen pathways instead of direct electrification. The side that does electrolyzers have a good value proposition and should be listened to. The side that does fuel cells, not so much. They all want a piece of that $39 trillion, after all.

And there are countries and industrial giants that perversely love hydrogen for transportation, causing confusion. Some now very old men in Japan’s government and Toyota got together in the 1990s and decided that hydrogen was the answer, and 30 years later they have to die off before new blood can change to electrification without causing them to lose face. Germany’s chemical industry loves hydrogen, and they have salt caverns, and as a result they have a dream of dunkelflaute storage of hydrogen in the caverns, and the odd distinction of being the only country in the world where it’s possible to conveniently own and drive a hydrogen fuel cell car anywhere in the country because they have hydrogen stations all over the place. That filling network was naturally heavily subsidized by the German government, and is barely used. Hyundai has managed to capture some Korean governmental officials and is trying to recreate the Japanese debacle, as well as in smaller scale it’s national nuclear debacle.

Lots of fossil fuel money, investor’s money, and fan bois are spending a lot of time and energy promoting hydrogen for things it’s not useful for. And governments are getting sucked in by the massive fossil fuel lobbying effort, hence a bunch of the contention.


Synthetic Fuels

Finally, we have synthetic fuels. In the best case scenario, these fuels take CO2 from waste emissions and hydrogen from electrolysis of water and combine them into hydrocarbon fuels. It’s entirely chemically possible, and has been done, to make gasoline, diesel, and jet fuel.

Synthetic fuels have pretty much the same negative externalities as biofuels.

  • CO2 (a lot less, but still present)
  • nitrous oxide (N20) with a global warming potential 265x that of CO2
  • nitrogen dioxide (NO2), which is a chemical precursor to smog
  • particulate matter
  • unburned hydrocarbons aka black carbon with global warming potentials thousands of times that of CO2, but typically less than bunker fuel

However, the kicker with synthetic fuels is that everything I wrote about the inefficiencies of hydrogen as a fuel apply doubly to synthetic fuels. After all the trouble of making it, compressing or chilling it, storing it, and possibly shipping it, then you have to use another lossy process to combine it with CO2 (which is also high energy to produce), and typically more processes to get it into a final usable form. By the time you get to the end of the process, the energy is like cocaine you buy from some guy on a street corner, stepped on so many times that you get barely any of the original substance.

What synthetic fuels have going for them is that they can be a bit cleaner than biofuels because there’s none of that messy biology and its convoluted organic chemicals in there, and like biofuels and fossil fuels, you can carry it in buckets, pipe it, and store it. The end result is effective, but deeply inefficient, and inefficiencies means that it will always be a lot more expensive.

But the final problem is when you use the synthetic fuel. Typically, they are burned, replacing gasoline, diesel, bunker fuel or kerosene in places where fossil fuels are used now. And that very expensive synthetic fuel’s remaining energy mostly turns into waste heat, with 15–20% efficiencies in cars, and better in bigger engines, but still below 50%. All that energy to make the synthetic fuels, and then you throw most of it away. This is just like fossil fuels, but since almost all the energy to make them was done millions of years ago by biological and geological processes, we haven’t cared. But when we make our own fuels from scratch, economics makes us care a lot.

Advocates of electrification point out that avoiding all of that hassle makes a lot more sense. Advocates of biofuels point out that biofuels are a lot cheaper, use a lot less energy to make, and have virtually the same advantages as synthetic fuels, and remember all the people advocating for biofuels.

Fossil fuel companies get in the mix too. They love synthetic fuels because they perpetuate things which burn fossil fuels, and they know that no one will ever pay for synthetic fuels when they can buy fossil fuels vastly more cheaply. Lots of baiting and switching, lots of ‘blended’ fuels with subsets of synthetic fuels mixed with fossil fuels, lots of lobbying.

This doesn’t mean we won’t make synthetic hydrocarbons, but they won’t be put in engines and burned for the most part. Power-to-X (P2X) will be for many industrial feedstocks, but power-to-fuel will be supplemental to biofuels.


So that’s the reason why there’s all this tribalism in alternative fuels. There’s a $39 trillion in annual profits in the industry up for grabs. The current players in the industry want to keep it all, and want to create as much confusion about alternatives as possible, and want to ensure that alternatives chosen can also use their products.

Other people, who actually want to solve the negative externalities problem and avert horrific outcomes from global warming, are fighting to be heard above the millions and billions of PR and lobbying.

In the end, the laws of thermodynamics will win. Hype doesn’t stand a chance against reality in the long term. But it’s an uphill battle, because the vast majority of people involved in the debate don’t understand or accept the laws of thermodynamics, but live on hope instead.


Here are some of my publications and podcasts where the subject is dissected in detail:

 

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Robinhood is up 160% this year, but several obstacles are ahead

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Robinhood is up 160% this year, but several obstacles are ahead

Florida AG opens probe into Robinhood. Here's the latest

Robinhood stock hit an all-time high Friday as the financial services platform continued to rip higher this year, along with bitcoin and other crypto stocks.

Robinhood, up more than 160% in 2025, hit an intraday high above $101 before pulling back and closing slightly lower.

The reversal came after a Bloomberg report that JPMorgan plans to start charging fintechs for access to customer bank data, a move that could raise costs across the industry.

For fintech firms that rely on thin margins to offer free or low-cost services to customers, even slight disruptions to their cost structure can have major ripple effects. PayPal and Affirm both ended the day nearly 6% lower following the report.

Despite its stellar year, the online broker is facing several headwinds, with a regulatory probe in Florida, pushback over new staking fees and growing friction with one of the world’s most high-profile artificial intelligence companies.

Florida Attorney General James Uthmeier opened a formal investigation into Robinhood Crypto on Thursday, alleging the platform misled users by claiming to offer the lowest-cost crypto trading.

“Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive,” Uthmeier said in a statement.

The probe centers on Robinhood’s use of payment for order flow — a common practice where market makers pay to execute trades — which the AG said can result in worse pricing for customers.

Robinhood Crypto General Counsel Lucas Moskowitz told CNBC its disclosures are “best-in-class” and that it delivers the lowest average cost.

“We disclose pricing information to customers during the lifecycle of a trade that clearly outlines the spread or the fees associated with the transaction, and the revenue Robinhood receives,” added Moskowitz.

Robinhood CEO Vlad Tenev explains 'dual purpose' behind trading platform's new crypto offerings

Robinhood is also facing opposition to a new 25% cut of staking rewards for U.S. users, set to begin October 1. In Europe, the platform will take a smaller 15% cut.

Staking allows crypto holders to earn yield by locking up their tokens to help secure blockchain networks like ethereum, but platforms often take a percentage of those rewards as commission.

Robinhood’s 25% cut puts it in line with Coinbase, which charges between 25.25% and 35% depending on the token. The cut is notably higher than Gemini’s flat 15% fee.

It marks a shift for the company, which had previously steered clear of staking amid regulatory uncertainty.

Under President Joe Biden‘s administration, the Securities and Exchange Commission cracked down on U.S. platforms offering staking services, arguing they constituted unregistered securities.

With President Donald Trump in the White House, the agency has reversed course on several crypto enforcement actions, dropping cases against major players like Coinbase and Binance and signaling a more permissive stance.

Even as enforcement actions ease, Robinhood is under fresh scrutiny for its tokenized stock push, which is a growing part of its international strategy.

The company now offers blockchain-based assets in Europe that give users synthetic exposure to private firms like OpenAI and SpaceX through special purpose vehicles, or SPVs.

An SPV is a separate entity that acquires shares in a company. Users then buy tokens of the SPV and don’t have shareholder privileges or voting rights directly in the company.

OpenAI has publicly objected, warning the tokens do not represent real equity and were issued without its approval. In an interview with CNBC International, CEO Vlad Tenev acknowledged the tokens aren’t technically equity shares, but said that misses the broader point.

JPMorgan announces plans to charge for access to customer bank data

“What’s important is that retail customers have an opportunity to get exposure to this asset,” he said, pointing to the disruptive nature of AI and the historically limited access to pre-IPO companies.

“It is true that these are not technically equity,” Tenev added, noting that institutional investors often gain similar exposure through structured financial instruments.

The Bank of Lithuania — Robinhood’s lead regulator in the EU — told CNBC on Monday that it is “awaiting clarifications” following OpenAI’s statement.

“Only after receiving and evaluating this information will we be able to assess the legality and compliance of these specific instruments,” a spokesperson said, adding that information for investors must be “clear, fair, and non-misleading.”

Tenev responded that Robinhood is “happy to continue to answer questions from our regulators,” and said the company built its tokenized stock program to withstand scrutiny.

“Since this is a new thing, regulators are going to want to look at it,” he said. “And we expect to be scrutinized as a large, innovative player in this space.”

SEC Chair Paul Atkins recently called the model “an innovation” on CNBC’s Squawk Box, offering some validation as Robinhood leans further into its synthetic equity strategy — even as legal clarity remains in flux across jurisdictions.

Despite the regulatory noise, many investors remain focused on Robinhood’s upside, and particularly the political tailwinds.

The company is positioning itself as a key beneficiary of Trump’s newly signed megabill, which includes $1,000 government-seeded investment accounts for newborns. Robinhood said it’s already prototyping an app for the ‘Trump Accounts‘ initiative.

WATCH: Watch CNBC’s full interview with Robinhood CEO Vlad Tenev

Watch CNBC's full interview with Robinhood CEO Vlad Tenev

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Hyundai and Kia are betting on lower-priced EVs to ride out tariffs

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Hyundai and Kia are betting on lower-priced EVs to ride out tariffs

Korean auto giants Hyundai and Kia think lower-priced EVs will help minimize the blow from the new US auto tariffs. Hyundai is set to unveil a new entry-level electric car soon, which will be sold alongside the Kia EV2. Will it be the IONIQ 2?

Hyundai and Kia shift to lower-priced EVs

Hyundai and Kia already offer some of the most affordable and efficient electric vehicles on the market, with models like the IONIQ 5 and EV6.

In Europe, Korea, Japan, and other overseas markets, Hyundai sells the Inster EV (sold as the Casper Electric in Korea), an electric city car. The Inster EV starts at about $27,000 (€23,900), but Hyundai will soon offer another lower-priced EV, similar to the upcoming Kia EV2.

The Inster EV is seeing strong initial demand in Europe and Japan. According to a local report (via Newsis), demand for the Casper Electric is so high that buyers are waiting over a year for delivery.

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Hyundai is doubling down with plans to introduce an even more affordable EV, rumored to be the IONIQ 2. Xavier Martinet, CEO of Hyundai Motor Europe, said during a recent interview that “The new electric vehicle will be unveiled in the next few months.”

Hyundai-Kia-lower-priced-EVs
Hyundai Casper Electric/ Inster EV models (Source: Hyundai)

The new EV is expected to be a compact SUV, which will likely resemble the upcoming Kia EV2. Kia will launch the EV2 in Europe and other global regions in 2026.

Hyundai is keeping most details under wraps, but the expected IONIQ 2 is likely to sit below the Kona Electric as a smaller city EV.

Hyundai-Kia-lower-priced-EVs
Kia Concept EV2 (Source: Kia)

More affordable electric cars are on the way

Although nothing is confirmed, it’s expected to be priced at around €30,000 ($35,000), or slightly less than the Kia EV3.

The Kia EV3 starts at €35,990 in Europe and £33,005 in the UK, or about $42,000. Through the first half of the year, Kia’s compact electric SUV is the UK’s most popular EV.

Hyundai-Kia-lower-priced-EVs
Kia EV3 (Source: Kia)

Like the Hyundai IONIQ models and Kia’s other electric vehicles, the EV3 is based on the E-GMP platform. It’s available with two battery packs: 58.3 kWh or 81.48 kWh, providing a WLTP range of up to 430 km (270 miles) and 599 km (375 miles), respectively.

Hyundai is expected to reveal the new EV at the IAA Mobility show in Munich in September. Meanwhile, Kia is working on a smaller electric car to sit below the EV2 that could start at under €25,000 ($30,000).

Hyundai-Kia-lower-priced-EVs
Kia unveils EV4 sedan and hatchback, PV5 electric van, and EV2 Concept at 2025 Kia EV Day (Source: Kia)

According to the report, Hyundai and Kia are doubling down on lower-priced EVs to balance potential losses from the new US auto tariffs.

Despite opening its new EV manufacturing plant in Georgia to boost local production, Hyundai is still expected to expand sales in other regions. An industry insider explained, “Considering the risk of US tariffs, Hyundai’s move to target the European market with small electric vehicles is a natural strategy.”

Hyundai-Kia-lower-priced-EVs
2025 Hyundai IONIQ 5 (Source: Hyundai)

Although Hyundai is expanding in other markets, it remains a leading EV brand in the US. The IONIQ 5 remains a top-selling EV with over 19,000 units sold through June.

After delivering the first IONIQ 9 models in May, Hyundai reported that over 1,000 models had been sold through the end of June, its three-row electric SUV.

While the $7,500 EV tax credit is still here, Hyundai is offering generous savings with leases for the 2025 IONIQ 5 starting as low as $179 per month. The three-row IONIQ 9 starts at just $419 per month. And Hyundai is even throwing in a free ChargePoint Home Flex Level 2 charger if you buy or lease either model.

Unfortunately, we likely won’t see the entry-level EV2 or IONIQ 2 in the US. However, Kia is set to launch its first electric sedan, the EV4, in early 2026.

Ready to take advantage of the savings while they are still here? You can use our links below to find deals on Hyundai and Kia EV models in your area.

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Blink Charging just threw a lifeline to EVBox Everon customers

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Blink Charging just threw a lifeline to EVBox Everon customers

As EVBox shuts down its Everon business across Europe and North America, EV charging provider Blink Charging is stepping up to offer support to customers caught in the transition.

EVBox’s software arm Everon recently announced it’s winding down operations alongside EVBox’s AC charger business. That’s left a lot of charging station hosts and drivers wondering what comes next. Now, EVBox Everon is pointing its customers toward Blink as a recommended alternative.

Blink says it’s ready to help, whether that means keeping existing chargers up and running or replacing aging gear with new Blink chargers.

“EVBox has played a significant role in the growth of EV charging infrastructure across the UK and Mainland Europe, and we recognize the trust hosts have placed in its solutions,” said Alex Calnan, Blink Charging’s managing director of Europe. “With the recent announcement of Everon’s withdrawal from the EV charging market, it’s natural to have questions about what this means for operations. At Blink, we want to assure Everon customers that we are here to help them navigate this transition.”

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Blink says it’s able to offer advice, replacements, and ongoing network management to make the changeover as smooth as possible.

Everon users who switch to Blink will get access to the Blink Network portal via the Blink Charging app. That opens up real-time insight into charger usage and lets hosts set pricing, manage users, and download performance reports.

“At Blink, our charging technology is future-ready,” added Calnan. “With advancements like vehicle-to-grid technology on the horizon, our chargers are built to support the future of electric vehicles and charging habits.”

The company says its chargers are in stock and ready to ship now for any Everon customers looking to make the jump.

In October 2024, France’s Engie announced it would liquidate the entire EVBox group, which it said posted total losses of €800 million since Engie took over in 2017. EVBox is closing its operations in the Netherlands, Germany, and the US.


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