From NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

h/t Doug Brodie

From Hydrogen Insight:

A large green hydrogen project being developed in Spain by EDP is in line for subsidies via the European Hydrogen Bank. But Hydrogen Insight has learned that the Portuguese energy firm is considering an exit from the process, amid a lack of clarity for potential off takers around regulations to drive demand.

Full story here.

This goes to the heart of why investors are reluctant to build hydrogen and carbon capture projects, in spite of the obscene subsidies on offer.

We have of course already seen BP pull the plug on their Teesside Hydrogen/CCS plant and the collapse of the Acorn carbon capture scheme in Scotland.

The concern of all three projects is whether there will be sufficient demand for their products. Hydrogen, is of course, ridiculously expensive compared to gas, even without carbon capture. So who on earth would want to swap gas for hydrogen?

Similarly, why would businesses pay to pipe their CO2 away?

In theory, companies will have no other choice, as natural gas will either be banned or priced out of the market by punitive carbon taxes.

But all these taxes will do is force businesses to pack up and move abroad. So, what then for EDP’s hydrogen plant or BP’s hydrogen power station?

Worse still, for these investors, is the risk that future governments will abolish Net Zero completely, or at the very least keep carbon taxes low. In that event, their business model is completely shot.