Hydrogen reformers: SMR versus ATR?
…think this will become a widely used reactor design for future clean hydrogen production. Please see page 12. For incumbent SMRs, the US Inflation Reduction Act (IRA) is worded in…
Energy macro: our top ten charts?
…best guess is that 2023 will bring weak macro conditions, as high inflation and rising interest rates ripple through the financial system. This will temporarily mute energy demand and prices….
Blue ammonia projects: a screen?
…the past 12-months (chart below). This suggests a very sharp acceleration in interest. We think the causes are reforms to 45Q regulation, as part of the Inflation Reduction Act, which…
Blue steel: construction boom?
…hydrogen and blue ammonia. Both currently seem to be booming in the US, following new incentives in the Inflation Reduction Act (IRA). And we think there are five factors underpinning…
East to West: re-shoring the energy transition?
…order to re-shore value chains from China to the West: input materials, energy costs, 2-3 re-inflation risks, dumping and general Western NIMBY-ism. We outline each challenge on pages 5-6. Re-shoring…
Energy transition: investment strategies?
…They will stoke inflationary feedback loops. And in turn inflation puts upwards pressure on the risk free rate. Thus rising rates should raise the bar on allocating capital across the…
Cement costs and energy economics?
…can easy “demand shift” to run off a heavy share of renewables in future power grids. Inflation in cement costs could be a challenge in the energy transition. European heat,…
Border taxes: a carbon curtain has descended?
…extremely constructive for the gas/LNG industry, pre-existing renewables assets, and some lower carbon economies. But we also see major losers in the coal industry, higher-carbon countries and victims of inflation….
Carbon capture and storage: research conclusions?
…the Inflation Reduction Act are already kickstarting a boom in blue value chains, from blue ammonia, to blue steel, to blue chemicals. This exciting theme is gathering momentum at a…
Global hydrogen: market breakdown?
…spectre of inflation, including for food prices, which will be a common theme. The refining industry uses 28% of the world’s H2 to make lower-sulphur fuels via hydro-cracking (1,200 scf/bbl) and hydro-treating…