Two continents have always had a complicated relationship. Over extended periods of tension and conflict, they eventually became allies and made history together. Now, these two continents will once again count on their deep-rooted relationship by linking up through the biggest transatlantic clean hydrogen trade corridor ever. This corridor will be built around the world’s most sought-after chemical element.
Two continents will be linked by the biggest trade corridor ever
The world is at war with climate change, and from Saudi Arabia to Australia plans on winning the war by decarbonization. The secret weapon is the world’s most sought-after chemical element, but the challenge is to securely and cost-effectively transfer it from continent to continent. Two continents decided to once again join forces, with the goal to deliver more than three million metric tons of this flammable element to its ally by 2030.
These ambitious allies are none other than the United States of America and Europe. The US energy group, the Transatlantic Clean Hydrogen Trade Coalition (H2TC), will be teaming up with the European Union (EU). The EU will receive almost one-third of this sought-after element through imports from the US annually by 2030, should all go to plan.
The allies will be linked by a corridor made from this
The H2TC plans to connect the US fuel manufacturers to the European heavy-industry consumers with the biggest “tunnel” ever. While not a literal tunnel per se, the two continents will be linked by their mutual support to ship the world’s most sought-after chemical element across the Atlantic by 2026. This sought-after chemical element is none other than renewable hydrogen.
By 2030, more than 3 million metric tons of renewable hydrogen in the form of ammonia and methanol will be shipped through this corridor annually. According to Nabil Bennouna, head of Climate Aligned Industries, ammonia is a hydrogen carrier and will be shipped via the Gulf Coast due to the active infrastructure. The area already comprises numerous plants that produce ammonia from fossil fuels for fertilizers. The next logical step would thus be to produce renewable ammonia for hydrogen.
According to early-stage evaluations, the product has competitive potential with other European products, especially considering the Biden Administration’s Inflation Reduction Act (IRA)’s substantial subsidies of a $3 per kg production tax credit for renewable hydrogen. Additionally, these projects will also expand the US producers’ distribution platforms, whilst expanding the supply chain that supports European sectors.
Rallying the troops in an attempt to decarbonize the globe
H2TC will be rallying troops from all across the market, from suppliers to off-takers, as well as crucial liquidity providers, which include big ports and associations in the US and Europe. Three of these troops include the Port of Rotterdam, the Port of Corpus Christi, and the Center for Houston’s Future, each tasked with providing wisdom from their respective industries on how to efficiently and effectively kick off transatlantic trade.
While much has remained top secret, as with any mission, the troops’ work has been endorsed by more than 20 major companies in the private sector, who are all vital to the hydrogen economy’s development. These major companies include:
- Apex Clean Energy
- Ambient Fuels
- BAES Infrastructure
- Buckeye
- Intersect Power
- Linde, LyondellBasell
- NextEra Energy
- OCI
- Shell
- STX
- Trafigura
- Zhero
“The region has the connective tissue in pipelines and salt dome storage; the low-cost renewables; and the know-how to produce, manage and transport molecules needed to deliver hydrogen to the world. Promoting the export of hydrogen derivatives will enable the broader U.S. hydrogen ecosystem to scale up faster” – Jacob Susman, founder and CEO of Ambient Fuels.
Renewable hydrogen will play a crucial role in the global war against climate change and is essential to the global mission of carbon zero by 2050.
Read the whole thing?
Get the week's signal, not the noise
Our sharpest reporting on energy, climate and nature — free, once a week.
