L R AS Published on Monday 1 May 2023 - n° 443 - Categories:hydrogen, various USA
In the US, green hydrogen projects could be profitable
According to a financial modelling analysis by policy consultancy Energy Innovation, green hydrogen projects can be profitable in "large parts" of the US, supported by
by new federal tax credits for clean hydrogen from the Federal Inflation Reduction Act
Power plant owner-operator AES Corporation and industrial gases company Air Products announced a $4 billion joint venture to build, own and operate a green hydrogen production facility in Texas with 1.4 GW of solar and wind capacity.and operate a green hydrogen production facility in Texas with 1.4 GW of solar and wind capacity, which could qualify for the Clean Hydrogen Production Tax Credit under Section 45V of the IRA.
The project, to produce 200 metric tons of green hydrogen per day, is "financially viable" even without a grid connection, according to Energy Innovation. Other locations are proposed provided there is a "strong" wind resource and a "decent" solar resource, these projects are "financially viable from the start".
The most profitable site was the West Texas location, making $143 per kW of smelter capacity per year, powering a 1 MW smelter plant with 3 MW of solar and 2 MW of wind.
https://www.pv-magazine.com/2023/04/24/us-green-hydrogen-production-can-be-profitable/
PV Magazine 24 April 2023
Editor's note: The advisors are not the payers. The phrase "financially viable" should make one wary.
