Customers found to be residing to gray hydrogen, with little interest to pay for green hydrogen; US turns to overseas allies for supply.
Here’s an article posted in S&P Global.
According to the article,
- The US has a strong domestic hydrogen market, but legacy customers are showing little interest in paying a premium for green hydrogen.
- Clean energy developers are pursuing federal incentives for low-carbon hydrogen production, but facing challenges with customer adoption.
- As a result, US developers are turning to overseas demand, with Dutch ports playing a crucial role in the hydrogen economy.
Dutch ports, particularly the Port of Rotterdam, play a crucial role in meeting the overseas demand of the U.S. for clean hydrogen for several reasons:
- Strategic Location: The Netherlands is strategically located as a gateway to Europe, with the Port of Rotterdam being the largest port in Europe. This makes it an ideal hub for importing and transporting hydrogen to other European countries, including the U.S.’s key trading partners.
- Existing Infrastructure: The Netherlands has a well-developed natural gas pipeline network that can be repurposed for hydrogen transportation. Additionally, the ports have plans to develop specialized infrastructure like hydrogen pipelines, storage facilities, and import/export terminals to facilitate hydrogen trade.
- Renewable Energy Capacity: The Netherlands is rapidly expanding its offshore wind capacity, which is crucial for producing green hydrogen. This renewable energy supply can be leveraged to meet the growing demand for clean hydrogen, both domestically and for export to the U.S.
- Collaboration and Partnerships: The Netherlands has actively sought partnerships with other countries, including the U.S., to develop international hydrogen trade relationships. This includes signing statements of intent and memoranda of understanding to facilitate hydrogen trade.
- Policy Support: The Dutch government has set ambitious targets for hydrogen production and import, and is providing policy and financial support to develop the necessary infrastructure and trade channels. This creates a favorable environment for the U.S. to access clean hydrogen through the Netherlands.
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