Hydrogen
Overview
Hydrogen is an increasingly important piece in the decarbonisation puzzle. Industrial players are seeking ways to take carbon emissions out of their hydrogen production processes, while green hydrogen producers see the gas as a viable outright alternative to hydrocarbons.
Future production routes range from methane reformation with carbon capture to pyrolysis, waste gasification and electrolysis, powered by renewable energy or fossil fuels. Combinations of processes and energy being used to produce hydrogen presents existing users of industrial heat and key chemicals a challenging landscape to navigate.
The Argus Hydrogen and Future Fuels service has been designed to provide industrial power, chemicals and energy users with crucial information to help them make well informed decisions. It covers the upstream for projects, midstream for transportation and storage, and downstream for ammonia and methanol. It also covers the latest technological developments and policy news on hydrogen from across the globe.
Latest hydrogen news
Browse the latest market moving news on the global hydrogen industry.
US grants Plug Power $1.7bn H2 loan guarantee: Update
US grants Plug Power $1.7bn H2 loan guarantee: Update
Updates with details throughout Houston, 17 January (Argus) — The US Department of Energy (DOE) has provided fuel cell system and electrolyzer manufacturer Plug Power a $1.7bn loan guarantee to finance up to six hydrogen production projects in the US. A planned wind-powered hydrogen production facility in Graham, Texas, will be the first project to receive funding from this new line of financing, the company said. Construction on the 45 metric tonnes/d plant is expected to begin within a month and conclude in about 18 months, doubling the company's current capacity, Plug Power chief executive Andy Marsh said. Upon completion, the plant is expected to be the largest green hydrogen plant outside of China, Marsh said. The loan guarantee comes in the waning days of President Joe Biden's administration, which has sought to kickstart a hydrogen economy to power the energy transition. With president-elect Donald Trump vowing to claw back unspent funds from Biden's signature climate legislation the Inflation Reduction Act, hydrogen proponents are also highlighting their industry's economic and national security benefits . "We believe the hydrogen economy aligns closely with national security interests, ensuring that the US remains at the forefront of energy technology development and deployment on a global scale," Marsh said. Plug has invested $250mn into the Texas facility and built about 14 miles of transmission lines to connect to a nearby NextEra Energy wind farm that will power the facility, Marsh said. Plug is also considering expanding its facility in Woodbine, Georgia, to 30 to 35 mt/d from its current 15mt/d capacity, with Marsh saying it will likely be the second project in the company's portfolio to benefit from the new credit line. Elsewhere, Marsh said the company is looking for opportunities across the US. "We want to make sure that hydrogen is available throughout the country, so it's a broad footprint that we will be looking at." Plug Power currently has a liquid hydrogen production capacity of about 45 mt/d at plants in Georgia, Tennessee and Louisiana and manufactures electrolyzer stacks at its factory in Rochester, NY. A last-minute flurry of tax incentives intended to spur hydrogen development and further the outgoing administration's goal of a decarbonized grid, along with the loan, will make expansion in the US much easier, said Marsh. Finalized 45V guidelines for hydrogen production tax credits and a new technology-agnostic approach to 48E incentives are likely to unleash activity across the industry, said Marsh. "We sell things like electrolyzers and mechanical products, so we do think the combination of 48E and 45V will be very, very beneficial to our business." Plug also signed a deal this week with Allied Green Ammonia (AGA) to supply a 3GW electrolyzer for a hydrogen-to-ammonia plant under development in Australia. AGA is expected to make a final investment decision by the second quarter of this year. If AGA greenlights the project, Plug will begin manufacturing and delivery of proton exchange membrane electrolyzers starting in the first quarter of 2027. Marsh is confident the company's expansion plans and broader hydrogen incentives will withstand scrutiny from the incoming administration. Oil and gas executives applaud 45V guidelines that extend incentives to natural-gas based projects that include carbon capture technology, while expanded production brings high-paying, blue collar jobs to many Republican-voting districts, Marsh said. "We're creating factory jobs in this industry." By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US grants Plug Power $1.7bn H2 loan guarantee
US grants Plug Power $1.7bn H2 loan guarantee
Houston, 17 January (Argus) — The US Department of Energy has provided US hydrogen fuel cell system manufacturer Plug Power Plug a $1.7bn loan guarantee to finance up to six hydrogen production projects in the US. A planned wind-powered hydrogen production facility in Graham, Texas, will be the first project to receive funding from this new line of financing, the company said. The loan guarantee comes in the waning days of President Joe Biden's administration, which has sought to kickstart a hydrogen economy to power the energy transition. With president-elect Donald Trump vowing to claw back unspent funds from Biden's signature climate legislation the Inflation Reduction Act, hydrogen proponents have started to highlight their industry's economic and national security benefits . "We believe the hydrogen economy aligns closely with national security interests, ensuring that the US remains at the forefront of energy technology development and deployment on a global scale," Plug Power chief executive Andy Marsh said. Plug Power has a liquid hydrogen production capacity of about 45 metric tonnes/d at plants in Georgia, Tennessee and Louisiana. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Denmark invites applications for CO2 storage permits
Denmark invites applications for CO2 storage permits
London, 9 January (Argus) — The Danish Energy Agency has launched its fourth tender inviting applications for exploration and CO2 storage, in three areas off the northwest coast of Denmark. The blocks, in the Danish North Sea, are geologically "particularly suitable for storing CO2", Denmark's geological survey found. The application deadline is 6 March. The Danish government issues permits with two phases — an exploration and a storage phase. If granted an exploration permit, developers have up to six years to investigate and assess the suitability and CO2 storage capacity of the area. They are then able to apply for a storage permit, which will be valid for up to 30 years. The Danish state holds a 20pc stake in all exploration and storage permits. Denmark awarded three CO2 exploration permits in February 2023, and three more in June last year. UK company Ineos took a final investment decision for the first phase of the Greensand CO2 storage project in December. The site's developers successfully demonstrated a pilot CO2 injection in March 2023. The carbon capture and storage (CCS) industry is gradually developing, led by northern Europe. The region has a geological advantage, in its declining oil and gas fields, as well as government funding from countries including Denmark and Norway. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Q&A: Germany's PtX Fund to ramp up in round 2
Q&A: Germany's PtX Fund to ramp up in round 2
London, 9 January (Argus) — Germany's state-backed Power-to-X (PtX) Development Fund aims to help unlock investment decisions for a handful of mature renewable hydrogen and derivatives (power-to-X) projects in select countries, thereby advancing environmental and social development goals. Berlin picked Bavaria-based fund manager KGAL to control the €270mn ($279mn) purse, and it recently awarded its first €30mn to a €500mn Egyptian project that will produce 70,000 t/yr renewable ammonia. Argus spoke with the fund's managing director Thomas Engelmann about lessons learned from the first round and hopes for round two, which opens 8 January – 5 March 2025. Edited highlights follow: Which countries are eligible in round 2, how is that decided? It is the mostly the same as round one — South Africa, Brazil, Morocco, Kenya, India, Egypt — plus Colombia as a new addition. The German government selects the countries most suited for this instrument from more than 60 partner countries co-operating with the Federal Ministry for Economic Cooperation and Development (BMZ). Not all countries have the right ecological conditions. Participating countries ideally have a workforce that is prepared to support PtX, and some potential domestic offtakers in the country. Why was Colombia added for this round? Colombia has good conditions for renewables — its electricity mix is currently 65pc hydroelectric, 4pc solar, and 30pc fossil fuels. And it plans to add 3GW offshore wind in future via government-run auctions. So Colombia should have among the cheapest PtX production. Costs in northern Colombia may reach €3.3/kg ($3.4/kg) in 2030 and €2.7/kg ($2.8/kg) by 2040, according to German research institute Fraunhofer ISE. The strong government support from Colombia also helps our goal of social transformation. What size projects will the fund support? We haven't set a minimum size, but ideally the total capital costs should be in the range of €100mn–500mn. That means €5bn 'white elephant' projects are probably not for us. We have up to €30mn available, which is definitely not enough to change the investment decision for a €5bn project. What is the €30mn grant designed to do? We bridge the gap to financial close, so our €30mn grant agreement supports the banks, supports the sponsors, acting like an airbag for the project to mitigate any kind of risks or uncertainties in the project. For us, it's non-refundable — in return we expect to see ecological and social transformation that comes from financial close and commercial operation. What key ingredients do you look for in projects? We are bound by EU state aid law, so we check very early in the process if projects are eligible. Project feasibility and technical readiness are important. We check the source of the renewable power. We check it's a profitable and reasonable business model. Clearly, we are not seeking return on investment for the PtX Development Fund, but we need to check that the equity sponsors and debt partners see a project that is economically viable. We want projects that have secured land and will reach financial close in 6-12, maybe 15 months. If a project is further away, that doesn't mean it's a bad project, it's just not ready for the purposes of this instrument. Each project must do a very intensive environmental and social impact assessment based on the lending standards of the World Bank via its International Finance Corporation (IFC). That is the minimum for eligibility before we consider its level of positive impact. Regarding impact, we want greenhouse gas emission reduction or avoidance. We want replacement of fossil fuel resources, in particular coal. We want job creation in the country and a 'just transition'. It's interesting if a project is scalable, for example, if we help with a €200mn first phase that unlocks future phases for the partners even without us. Are those criteria typical for many financiers? Correct, so it's a huge plus for a project if our fund awards a grant, as it shows the overall concept of the project has been checked according to World Bank and IFC standards. Other banks coming later or in parallel to us know the project is sustainable, complies with renewable power additionality principles, does not conflict with local water uses, and its land is free from social or ecological conflicts. Does the fund have rules on who the offtaker should be? Ideally the project would have offtakers in the country to support our target of local value creation. But not all seven countries have the possibility to absorb 100pc of the product, and clearly, we need economically viable projects. In our first-round project, part of the ammonia stays in Egypt and part will go to Europe. What lessons can developers take from round one? We realised the name PtX Development Fund could be misinterpreted, as we often had to explain that we don't have development money available — our name just means we are supporting developing countries. Hopefully in round two, those projects will return with an extra year of maturity. Second, we must clarify that the environmental and social impact assessment is of utmost importance. We very often had discussions with developers that said, "my local government is not interested in doing impact assessments on ecological or social impacts," but we, as the PtX Development Fund, cannot accept that. On technology, the starting point must be electrolysis since this instrument aims to help bring it to market and lower its cost. Yes, e-fuels production needs some carbon molecules, but we don't want projects that are completely biomass with no electrolysis involved. And what did you learn about the wider PtX industry? We were positively surprised to get 98 expressions of interest totalling €150bn potential investment and 56GW electrolyser capacity across these countries. But most projects were still in feasibility studies. We followed up with around 10pc of interested parties, then after deeper due diligence, held negotiations with 2-3 projects. We see the technology for PtX is ready, but finding offtakers able to pay the premium for CO2-neutral products is hard. Mandates with penalties, like the EU's e-SAF quota, definitely stimulate the market, but it would be better if they started in 2025-26 rather than 2030. Green ammonia buying for now is mainly voluntary and it depends on fertilizer companies being able to attract a premium for it to work. A green steel market is emerging in Sweden, as carmakers can attract a premium for 'green' products. We hope the EU's Renewable Energy Directive III will set quotas for ammonia and steel, but the carbon border adjustment mechanism is of utmost necessity to ensure European industry is not disadvantaged. What are your expectations for round two? Round one gave us an overview of the countries, so we really know about the quality of the projects. Now in round two, we want to support possibly several projects. Projects may enter multiple rounds and increase their quality each time until they reach an attractive level. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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