From NOT A LOT OF PEOPLE KNOW THAT
By Paul Homewood
h/t Philip Bratby
Norwegian energy giant Equinor has scrapped plans to produce so-called blue hydrogen, citing high costs and insufficient demand.
The move will raise concerns over Equinor’s plans in the UK, where it is heavily involved in a number of hydrogen projects.
It had pledged to generate low-carbon hydrogen from natural gas, known as blue hydrogen, in combination with carbon capture and storage (CCS) in Norway. The hydrogen produced would then be exported to hydrogen-ready power plants in Germany.
The project would have included building the world’s first offshore hydrogen pipeline.
The problem for Equinor’s German project was that it could not find enough customers to buy the hydrogen it proposed to produce.
Mr Eidsvold said Equinor also couldn’t continue maturing the projects without firm long-term commitments from European buyers to import hydrogen.
He said: “We are not able to make this kind of investment when we don’t have long-term agreements and the markets in place.”
https://www.telegraph.co.uk/business/2024/09/21/norwegian-oil-giant-equinor-abandons-blue-hydrogen-plans
It’s the old, vicious circle!
There is no natural market for bulk hydrogen because it is far more expensive than natural gas.
Hence Equinor can only sell it if customers in Germany receive massive govt subsidies to do so.
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