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The construction site of a plant for the production of hydrogen in Germany. 

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A California-based startup backed by two pioneering scientists, one of whom is a Nobel laureate, believes it is on the cusp of a “quantum leap” in the hydrogen energy race.

H2MOF, which was co-founded in 2021, is working to develop a solution for hydrogen storage by deploying the latest advancements in the field of molecularly engineered materials.

It says a breakthrough in what it regards as the greatest challenge facing the hydrogen economy is just a matter of time.

“The production of hydrogen, as far as I’m aware, is a settled problem,” professor Fraser Stoddart, winner of the Nobel Prize in Chemistry in 2016 and one of the co-founders of H2MOF, told CNBC via videoconference.

“There are ample efficient ways of producing hydrogen. The big challenge that remains is to store it in a manner that stores a lot of it at low pressures and ambient temperatures,” Stoddart said. “I am confident that one way or another we will get there of course.”

Hydrogen is the lightest and most abundant element in the universe, and has long been billed as one of many potential energy sources that could play a pivotal role in the green transition.

I would say that in the next couple of years we should be able to make another quantum leap forward.

Professor Omar Yaghi

co-founder of H2MOF

Transforming hydrogen into fuel requires energy. If produced using renewable energy, hydrogen’s only climate footprint is water, making it an attractive option for applications such as transportation and electricity generation.

Currently, most hydrogen is produced using fossil fuels such as coal and natural gas, a process that generates planet-warming emissions.

Professor Omar Yaghi, founder of reticular chemistry field of science and co-founder of H2MOF, said the company is seeking to compress hydrogen into a small volume without having to use high pressure or low temperatures.

“That’s really the holy grail of the field,” Yaghi said. “How can we store enough hydrogen at room temperature and be able to use it for automobile fueling.”

H2MOF’s co-founders say they are hoping the firm can overcome the high costs and energy demands associated with traditional hydrogen storage methods by designing prototype tanks that can store the energy-rich fuel in a solid state.

Yaghi, who invented metal-organic framework (MOF) materials, providing the inspiration for the startup’s name, said it was difficult to say precisely when H2MOF’s technology might be able to achieve a dramatic improvement in hydrogen storage capacity and safety.

“But I would say that in the next couple of years we should be able to make another quantum leap forward,” Yaghi said.

Hydrogen challenges

Hydrogen power has been gaining momentum despite global headwinds such as rising interest rates and supply chain issues.

Countries including the United States, Germany, Japan and Australia have announced or updated national hydrogen strategies in recent years, seeking to expand their reliance on the gas to shift to a low-carbon economy.

An industry report published late last year by the Hydrogen Council, a business group, found that the hydrogen project pipeline had climbed to $570 billion, a 35% increase from just six months earlier.

The report said that while growth in global hydrogen investments through to 2030 remained robust, further projects would need to be announced and existing projects would need to mature faster.

Hydrogen cars fueling up at True Zero in Fountain Valley in June 2023.

Allen J. Schaben | Los Angeles Times | Getty Images

Samer Taha, CEO and co-founder of H2MOF, said an “intermediate solution” to the hydrogen storage challenge would likely be achieved in a few years.

“But reaching the holy grail? Probably more than a couple of years but not necessarily decades,” Taha told CNBC via videoconference. “From the speed of research progress we see and being accelerated by AI and all these computer generated models, I predict that it is a matter of years not decades.”

H2MOF’s Stoddart endorsed his colleague’s timeline. “But it is always very difficult to predict the future,” he added.

Critics of hydrogen say that while the fuel can play an important role in the energy transition, it can do so only in a way that is truly climate-aligned. Otherwise, it risks increasing health-harming pollution and stalling clean energy progress.

“There are challenges for sure,” Taha said. “Electricity cannot really solve all the demand requirements of energy in all segments and all sectors. The only way to do that is that you need to provide an alternative fuel that has high energy intensity, similar or better than a fossil fuel, and currently the cleanest option we have is hydrogen.”

He added, “My point is sooner or later we will reach a bottleneck where no more electrification can be done and you must provide an alternative fuel, and that’s hydrogen.”

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VinFast starts US deliveries of its VF9 3-row SUV, and we got a quick drive in it

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VinFast starts US deliveries of its VF9 3-row SUV, and we got a quick drive in it

VinFast delivered its first VF9 vehicles to customers in Los Angeles yesterday, kicking off US deliveries of the new 3-row electric SUV.

VinFast is a relatively new EV brand, founded in Vietnam in 2017, under the umbrella of massive Vietnamese conglomerate Vingroup. It started delivering cars to the US in 2023 with its VF8 mid-size SUV.

The VF9 is its three-row large SUV, which has been delivering in Vietnam since the 2023 model year, and also in some other Southeast Asian and a few European markets. But now it’s ready to start delivering the VF9 here in the US, and it started last night in Los Angeles.

VinFast held a small event at its US headquarters in Los Angeles to deliver the first 8 VF9s to the US market, and invited us out to the event and to have a quick look at the car.

VinFast told us that it currently has 36 dealerships in 15 states, with 13 company owned stores in California. So deliveries won’t just start right away in California, but other territories as well. However, VinFast couldn’t provide us an estimate of what the delay before delivery would be if ordering a vehicle today.

VinFast trim levels

The VF9 comes in two trim levels, Eco and Plus. The Eco model starts at $69,800 with the Plus version $4k more at $73,800. First deliveries will start with the Plus model, with the Eco coming a few months later.

But despite those somewhat high starting prices, VinFast is also offering a limited-time promotion for the first 100 vehicle deliveries to lease the Plus for $529/mo with $2,000 down. And since the VF8 has seen some really great lease deals, we could imagine the VF9 might get the same treatment after deliveries start happening in earnest.

The trim levels don’t differ significantly in drive capabilities, with the same battery and motor between the two. See the full spec sheet here.

The main differences are in a bunch of additional interior comforts on the Plus, like ventilated massaging seats, 2nd row seat heaters, seat and steering wheel position memory, rear LCD display, panoramic roof and a subwoofer. The Plus also has fog lights and cornering lights.

However, the Plus also has lower range at 291 miles instead of 330 miles, primarily due to larger 21in wheels compared to the base 20in wheels. Wheels can make a huge difference in aerodynamic efficiency, especially with different wheel cover designs.

The Plus is also about 100lbs heavier than the Eco, and can come in a 6-seat “captain’s chair” configuration, whereas the Eco only comes in a 7-seat layout.

Extremely quick first drive

We got a chance to drive the VF9 very briefly, but given that it was in the middle of LA rush hour traffic and only a few miles, this barely even qualifies for “first drive” status.

However, the vehicle felt quite spacious inside – as one would expect from a large SUV. We only sat in the seats for a few minutes, but the seat material was passably comfortable (not like the outstandingly comfortable EX90). The third row has a huge amount of headroom, but little legroom – you’re basically sitting on the floor back there, and it takes some work to get out of it, too.

The drive software does seem to have matured compared to the previous VF8 version I drove. That VF8 had horrendous throttle lag, especially when starting from 0mph, but I didn’t experience that quite so much here in the VF9. It felt better. They’re making progress.

The throttle pedal is a little weirdly jumpy though in sport mode, so despite that I set almost all EVs to sport mode and just leave it there, this might be a car that I’d drive in standard or eco more often. And hope that Vinfast continues to tweak the drive software to make it feel a little more refined. But that said, again, I’d like a chance to test this more and get a feel for it.

Power was good though not amazing, it’s a large car after all so comfort is going to be more of a premium than speed.

I like VinFast’s user interface well enough – it’s pretty well laid out, it doesn’t suffer from the lag that some other UIs do, and you can always escape to CarPlay or Android Auto if that’s your preference. Though the gathered media did experience some random faults on the 3 early-production press cars we had access to for the night, like a faulty anti-window-pinch sensor and rear hatch closure sensor.

All in all, after the relatively poor overall reviews for the VF8 and a middling experience myself when I drove one, I came away pleasantly surprised by the VF9, with a vehicle that was nicer than I expected on this very short drive. I’m still not a large SUV guy and would love to see some of VinFast’s smaller vehicles here (the VF7 is coming to the US, but I’d like to see the even-smaller ones), but as long as the arrow keeps going in the right direction and VinFast keeps improving, there could be a nice future here for Vietnam.

And that’s the thing… I really want VinFast to succeed. I like the idea of having another country join the international stage of auto manufacturing, and it would be great for Vietnam to gain some chops in the realm of complex manufacturing. The country already does well in textiles and electronics… but cars are a whole different thing. This drive was too short to draw many conclusions, but VinFast does seem to be improving from the short experience we had.


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Crude oil little changed after rallying on escalating Ukraine-Russia tensions

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Crude oil little changed after rallying on escalating Ukraine-Russia tensions

Croft: Enforcing sanctions will drop Iranian oil exports

Crude oil futures edged slightly lower on Tuesday, after rallying about 3% in the prior session on fears that the war between Ukraine and Russia is escalating.

President Joe Biden has authorized Ukraine to use long-range missiles to hit targets in Russia in a major departure from Washington’s previous position, according to media reports.

Russian President Vladimir Putin on Tuesday lowered Moscow’s threshold for using nuclear weapons.

Here are Tuesday’s energy prices as of 7:39 a.m. ET:

  • West Texas Intermediate December contract: $68.79 per barrel, down 37 cents, or 0.53%. Year to date, U.S. crude oil has declined about 4%.
  • Brent January contract: $73.02 per barrel, down 28 cents, or 0.38%. Year to date, the global benchmark has shed about 5%.
  • RBOB Gasoline December contract: $2.0133 per gallon, down 0.25%.Year to date, gasoline has fallen about 4%.
  • Natural Gas December contract: $2.950 per thousand cubic feet, down 0.77%. Year to date, gas has gained more than 16%.

Stock market futures fell on the growing geopolitical tensions, with Dow futures down more than 200 points.

Biden’s decision comes just two months before he departs office. President-elect Donald Trump campaigned on ending the war in Ukraine.

Moscow’s full-scale invasion of Ukraine roiled global energy markets in 2022 as European nations sought to end their dependence Russian natural gas.

Don’t miss these energy insights from CNBC PRO:

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Xiaomi raises delivery target yet again for its new EV, as ‘demand surges’

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Xiaomi raises delivery target yet again for its new EV, as ‘demand surges’

China’s Xiaomi has reported a 30.5% growth in third-quarter revenue for its EV business, with the company also bumping up its yearly delivery target for the SU7 series EVs to 130,000 units.

Back in May, Xiaomi – the world’s third-largest smartphone maker – had said that it planned to build 100,000 EVs by the end of the year, with the company well on its way to achieving that goal. CEO Lei Jun said on his social media account that the company was bumping up its previous target of 120,000 of its first EV as “demand surges,” reports Reuters.

Last December, Xiaomi debuted its first vehicle, the SU7, which officially launched in March, offering three versions – Standard, Pro, and Max, with the Standard starting at $30,761 – strategically about $4,000 cheaper than the price of Tesla’s Model 3 in China. A souped-up hypercar version, the Ultra, has also since been unveiled.

Xiaomi SU7 Ultra. Source: Xiaomi

Since its launch, the SU7 has been a hit in China and is set to easily surpass production goals of 100,000 units one month early. To boost that momentum, Xiaomi now expects to complete the construction of an expansion of its EV factory in mid-2025, which should ramp up its numbers even more – at least, that’s the aim.

In the third quarter of this year, Xiaomi has said that it delivered 39,790 units of the SU7, for a total sales figure from its March launch to the end of September to 67,157 units.

Huatai Securities has forecast Xiaomi will deliver 400,000 EVs in 2025, with its EV business accounting for about a fifth of its revenue compared with 8% this year, Reuters reports.

Of course, analysts have predicted the company would lose money on its SU7, to the tune of around $10,000 a vehicle, but the smartphone maker has a tidy cash reserve of $15 billion to help it weather the storm.

Xiaomi SU7
Source: Xiaomi Weibo account

While facing plenty of competition in China from the likes of BYD, the company has, for one, tremendous brand appeal to the Chinese consumer, who are already familiar with its products and user interfaces. In addition to an alluring price point, the SU7 is a connected car that syncs with other devices. Compared to other EV makers, Xiaomi, too, has an edge on software and a jumpstart on autonomous driving, which it has been testing on roads for a few years.

The company says it plans to invest $10 billion over the next 10 years in building its EV empire, reports have said. By the end of the year, the company expects to expand to 22 sales stores, 135 service centers, and 53 delivery hubs in 59 cities.


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