Hydrogen storage tanks in Spain in May 2022. Hydrogen has a diverse range of applications and can be deployed in a wide range of industries.
Angel Garcia | Bloomberg | Getty Images
The buzz around hydrogen has gotten increasingly loud in the past few years — many see it as an important tool in reducing the environmental footprint of heavy industry and helping economies hit net-zero goals.
The green hydrogen sector, which is centered on producing it using renewable sources of energy like wind and solar, has drawn particular interest and boasts some high-profile backers.
They include German Chancellor Olaf Scholz, who in 2022 called it “one of the most important technologies for a climate-neutral world” and “the key to decarbonizing our economies.”
In the world of business, multinationals from Iberdrola to Siemens Energy are also looking to make plays in green hydrogen.
But while there’s a huge amount of excitement about the potential of hydrogen — the International Energy Agency describes it as a “versatile energy carrier” — there are also undoubted challenges.
For a start, the vast majority of hydrogen production is still based on fossil fuels, not renewables — a fact clearly at odds with net-zero goals.
And when it comes to green hydrogen specifically, production costs are a significant issue, and will need to be reduced in the years ahead.
Transporting hydrogen from production sites to users is another equally important factor to consider.
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“Hydrogen is pretty expensive to move,” Murray Douglas, head of hydrogen research at Wood Mackenzie, told CNBC during an interview.
“It’s more difficult to move than natural gas … technically, engineering wise … it’s just harder,” he added.
Douglas is not alone in highlighting some of the hurdles in delivering hydrogen.
The U.S. Department of Energy, for instance, notes key challenges “include reducing cost, increasing energy efficiency, maintaining hydrogen purity, and minimizing hydrogen leakage.”
The DOE adds that more research is required to “analyze the trade-offs between the hydrogen production options and the hydrogen delivery options when considered together as a system.”
Location important
In relation to the logistics surrounding green hydrogen in particular, one areathat will need attention is the location of production facilities.
Often, these are earmarked for areas where sources of renewable energy are abundant — such as Australia, North Africa and the Middle East — but many miles away from where the hydrogen will actually be used.
Wood Mackenzie’s Douglas referenced transportation options when reflecting on the investment horizon for the next 10 years.
“You can obviously pipe it, but you probably need a dedicated pipeline,” he said, noting that this would likely need to be a new build and close to end-users.
The only other realistic option in this investment horizon, he said, relates to exporting the hydrogen as ammonia.
“You produce the hydrogen, the green hydrogen, and then you would synthesize it into ammonia with nitrogen,” he said.
The shipping of ammonia was, Douglas noted, “a pretty established technology and industry — there’s already a bunch of receiving ports in place.”
This ammonia could then be sold directly to end users, such as fertilizer producers.
An alternative option would be to “crack the ammonia back into hydrogen,” although this would not be without its own issues.
“As soon as you start ‘cracking’ back into hydrogen use, you start to incur some … quite big energy losses,” Douglas said.
Efficient delivery system needed
In a statement sent to CNBC, Jorgo Chatzimarkakis, the CEO of industry association Hydrogen Europe, was bullish about the prospects for green hydrogen.
He said it would “become a global commodity,” before stressing the importance of having “an efficient delivery system.”
Chatzimarkakis also highlighted the need for a certification program, because “green hydrogen needs to prove that it is sourced from renewable energy.”
Despite some clearly big obstacles, partnerships and programs related to the supply and distribution of green hydrogen are starting to take shape.
Earlier this year, for example, Greenergy and Octopus Hydrogen — the latter is part of the Octopus Energy Group — announced they had started a “green hydrogen delivery partnership.”
Elsewhere, German firm Enertrag says it’s been “operating a tanker and transport trailer to deliver large quantities of green hydrogen to customers” since 2021.
And back in 2022, Madrid-headquartered energy firm Cepsa said it would work with the Port of Rotterdam to develop “the first green hydrogen corridor between southern and northern Europe.”
Sticking point
Though the technology and knowledge for hydrogen production and delivery are there, one sticking point remains.
“The industry knows how to transport hydrogen,” Wood Mackenzie’s Douglas said, adding that the energy and chemicals sectors have been transporting it for “a long time — it’s not new, it’s just expensive.”
Expanding on his point, Douglas said getting production costs down is key. The lower those are, the more manageable transportation costs would become.
“I’m not sure if there’s any sort of magical … cost reduction technology that’s going to come into the transportation side of the equation,” he added.
“We’re not suddenly going to find … a better material to ship hydrogen through,” he said.
“If you’re liquefying it, you have to get it very cold, and that’s just expensive,” he went on to add. “If you’re turning it into ammonia, there’s a cost in there, and then there’s a bunch of challenges around toxicity.”
“They know how to do all of these things,” he went on to conclude. “It still just comes down to cost.”
The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
UPDATE: telematics announcement.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
XCMG battery swap crane; via Etrucks New Zealand.
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
“XCMG remains committed to advancing engineering technology to empower a sustainable future. Our mission is to deliver efficient, intelligent, and eco-friendly lifecycle solutions for global clients,” said Mr. Yang Dongsheng, Chairman of XCMG Group and XCMG Machinery. “Today, 19% of our product portfolio comprises green innovations under our ‘Green Mountain’ new energy line, with full electrification across all series underway.”
On today’s troubling episode of Quick Charge, we explore all the troubles befalling Tesla (and TSLA stock) in the month April – with top executives fleeing the ship, demand plummeting, sales slipping, government incentives at home and abroad under threat, and a raft of receipts brought on by an OpenAI lawsuit hitting the brand, it’s already a bad month for Elon … and there’s still 20 more days to go!
None of this even touches on the $43 million “backlogged” rebate scandal Tesla’s facing in Canada that’s being blamed for people’s negative attitudes about the brand (ha!) or the fact that neither the long-promised Roadster 2.0 or the Tesla Semi will see production anytime this year, either.
The word you’re looking for when you think of Tesla these days is, “cooked.”
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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Renewable developer Vesper Energy has cut the ribbon on Hornet Solar in Swisher County, Texas, one of the largest single-phase solar farms in the US.
As Electrek reported in January, the 600-megawatt (MW) Hornet Solar includes over 1.36 million modules covering more than 6 square miles. The project will contribute more than $100 million in new tax revenue to Swisher County and deliver 600 MWac of energy–enough to power 160,000 homes annually.
January 30, 2025: “The seamless coordination between our team and our EPC partner, Blattner, has enabled us to remain ahead of schedule and on budget while ensuring quality throughout the process,” said Juan Suarez, co-CEO of Irving-based Vesper Energy.
Hornet Solar uses bifacial solar panels mounted on a single-axis tracking system to maximize efficiency. The solar farm is connected to Oncor Electric’s transmission system within ERCOT and is contracted to provide power to four off-take partners through individual Virtual Power Purchase Agreements (VPPAs).
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The Hornet Solar project in the Texas Panhandle is on track to be fully online by spring 2025.
Texas is a utility-scale solar leader in the US, with a ranking of No. 2 and 37,713 MW currently installed. It’s projected to install 51,144 MW over the next five years and move into the No. 1 spot, according to the Solar Energy Industries Association (SEIA). The total solar investment in the state is $45.2 billion.
On January 21, the SEIA, Conservative Texans for Energy Innovation (CTEI), Advanced Power Alliance (APA), and the Texas Solar + Storage Association (TSSA) reported that existing and expected utility-scale solar, wind, and battery storage projects will contribute over $20 billion in total tax revenue – and pay Texas landowners $29.5 billion – over the projects’ lifetimes.
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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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