Promising Projects Promoting Hydrogen Demand

After launching the Building the Clean Hydrogen Economy consortium in 2021 to help accelerate hydrogen deployment in the US, Guidehouse was joined by more than 20 companies in brainstorming prospective projects. Analysis was conducted on six of the projects, and detailed business cases and financial analyses were developed for three of them: Southwest hydrogen corridor for heavy transport, clean ammonia production from nuclear generation, and integrated blue and green hydrogen in the Gulf Coast. The Guidehouse team also developed some public takeaways on the projects. 

The medium heavy-duty transportation segment presents a major decarbonization opportunity, but obstacles to hydrogen adoption remain unaddressed; the consortium studied the entire value chain and developed a pilot concept that addressed barriers to adoption, leveraging member assets. Guidehouse experts found that reliable, cost-competitive, clean hydrogen supply can be achieved to support early vehicle deployments.

Based on current market prices, the global ammonia market is $270 billion, and it is expected to grow significantly—with fertilizer being the core market for ammonia and growth opportunities present in marine fuel, combustion fuel and as a hydrogen carrier. A clean ammonia pilot definition was developed based on known competitive advantages of the consortium members.

With the Gulf Coast being an epicenter of hydrogen production and consumption in the US, the consortium developed an ambitious vision for decarbonization of existing and new hydrogen uses along the coast. Studying the entire value chain, the analysis shows that the Gulf Coast project is a viable, integrated hydrogen hub with a long-term vision that is aligned with the Bipartisan Infrastructure Law.

If you are interested in participating in the 2022 Guidehouse hydrogen consortium that is expected to kickoff in June 2022, please contact Lisa Frantzis.