An energy sector leader says natural hydrogen should get the same governmental support, including subsidies, as green hydrogen.
Wood Mackenzie, a leader in analysis for energy opportunities and now part of Veritas Capital, talks about the opportunities for natural hydrogen, and the support it will need, in a new blog on its website.
“White hydrogen’s superpower is that – unlike alternatives such as green or blue, which require inefficient conversion processes – it comes ready-made and at a much lower cost,” the article says. (Natural hydrogen is also known as white, or gold, hydrogen.)
Green hydrogen, man-made, will “depend for years on substantial subsidies to work towards a commercial threshold in the range of US$3/kg”.
Governments around the world have pledged financial support for green hydrogen.
“Capturing similar levels of subsidy support to green hydrogen (for natural hydrogen) would provide a significant boost to infrastructure, displacing some higher-cost manufactured hydrogen production.
“Given the right regulations and incentives, governments could enable exploration opportunities for these (oil and gas) companies and kick-start the sector.”
Full article here.