But Gernot Wagner from Columbia Business School says that using hydrogen in small vehicles ‘doesn’t make sense’. ‘Electric engines are simply significantly more effective at converting energy into distance,’ he says. He says that carmakers are still developing hydrogen-powered models due to a ‘mistaken belief’ that consumers would prefer them. He likewise adds that electric-powered heat pumps are superior to hydrogen-powered heating. Wagner points to research from Goldman Sachs showing that chemical applications, when combined with carbon capture and storage, are where green hydrogen most economically abates carbon emissions.
Potential for green and blue hydrogen determined by viability of applications, as well as economic feasibility
‘There’s a good chance electrolysers will someday be so cheap as to make green hydrogen competitive with grey hydrogen, but that takes massive investments,’ says Wagner. ‘We’re beginning to see investments, with LONGi, one of the world’s largest solar producers, now moving into electrolysers. But it’s still early days.’
While the OBBBA guts renewable energy incentives, undercuts US manufacturing, and hands a long-term advantage to China, economics will continue to drive clean energy growth.
