Far East Capital Newsletter
How many people really understand hydrogen?
16 Oct 2021

In This Issue

How many people really understand hydrogen?

Politicians and promoters seem to be talking about hydrogen as a wonderful new source of energy, but this isn't quite right. It is not a primary source of energy like gas or coal. It is more like a battery, storing energy after it has been made, and it has to be manufactured, not found. Whether or not it is green depends upon how it is made.

Emphasising this point, at the moment the world produces about 90 tpa of hydrogen valued at US$150bn. It is almost exclusively done by converting fossil fuels, accounting for 6% of the world consumption of natural gas and 2% of the coal. In the process, it emits more than 800 Mt of carbon dioxide. Tell me how that helps reduce the CO2 emissions. Quite obviously, it doesn't. So, what are the politicians rabbiting on about? Why are many companies saying that they are great green hydrogen plays? What have they got that others don't have? Let's look more closely. 

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