Hydrogen from hydropower

[GregLocock]

This is a puzzle.

$500 M to create 10000 tonnes of hydrogen per year from hydropower. So at 10% RoC, $5/kg. Market price of hydrogen is $2/kg - I wonder who will pay the difference?

NY is going to need every bit of storage it can get, turning almost half of (some of) that stored energy into low grade heat seems rather a waste. The reason they need hydro to do this is that they can't use intermittent power, like many industrial processes, or indeed, houses.

https://www.airproducts.com/company/news-center/2022/10/1006-air-products-to-build-green-hydrogen-production-facility-in-new-york

 

[MintJulep]

It doesn't need to be profitable because there's a "vision".

This project supports New York State's goal of becoming a Regional Clean Energy Hydrogen Hub, as announced by Governor Kathy Hochul in March 2022. New York's hydrogen hub ambitions directly support the goals of the State's Climate Leadership and Community Protection Act.

Actually two visions that can gaze into each other's eyes and proclaim mutual adoration.

It's an economically depressed area of NY state so Air Products can count on "receipt of certain local and state incentives, as well as any benefits from the Inflation Reduction Act (IRA), and which are anticipated in the current project budget."

 

[MintJulep]

Greg's link is two years old.

Construction started recently.

Construction starting on hydrogen plant in Massena

The project is expected to employ 200 people during construction and 90 people once production begins.

www.northcountrypublicradio.org

 

[GregLocock]

...and stopped

Feb 24, 2025 —

A company that was going to build a liquid hydrogen plant in Massena and employ 90 people is abandoning the project.

Air Products, an industrial gases and chemicals company, announced Monday it is canceling the $500 million dollar project because a hydrogen production tax credit is no longer available. The company also said the hydrogen market was developing slower than expected.

Air Products also canceled projects in California and Texas. The company said the change in plans will focus resources on projects that "drive value for Air Products' shareholders."

I'm guessing the tax credit was something to do with Biden's IRA. It was US$3/kg, almost double what the Australian government is (for the time being) offering.