There are increasing calls for supply chains to diversify, particularly from China which controls a lion’s share of solar and critical minerals manufacturing and processing. Atul Arya, Chief Energy Strategist at S&P Global Commodity Insights discusses how diversification may take time but is inevitable. Learn more at APPEC 2023 | Houston | September 4-6

The oil-rich Persian Gulf region is stepping up its involvement in the production of sustainable aviation fuel (SAF), thanks to its established energy infrastructure, but uptake of the clean product by its airlines would depend on regulations and costs to hit net-zero emissions targets. Article included in Commodity Insights Magazine. Read the latest issue

New York | December 2023

Dubai | October 2023

Paris | November 2023

California utilities are working to restore power after Tropical Storm Hilary blew through Southern California, causing solar generation to plummet as storm clouds covered much of the state.Hilary weakened from a hurricane to a tropical storm before it made landfall Aug. 20 on the northern Baja California Peninsula and later moved into Southern California."After moving inland across Southern California late Sunday, moisture associated with Hilary is forecast to continue streaming northward through the Intermountain West [Aug. 21]," the US National Weather Service said in its Aug. 21 daily discussion.Several areas in Southern California reached new low temperature records Aug. 20 and set daily precipitation records. Lake Cuyamaca received 4.11 inches of rain, breaking a 1984 record, while San Diego received 1.82 inches of rain, breaking a record from 1906, according to the weather service. In Palm Springs, 3.18 inches of rain fell Aug. 20, bringing the monthly total to 3.1 inches above normal, according to the weather service."We're already back to normal weather, which will allow crews to access where the outages are," Southern California Edison spokesperson Jeff Monford said.Power outages At the peak outages, there were roughly 500,000 customers without power, according to utilities. There were more than 51,000 outages across California as of 1pm CT Aug. 21.SCE had 10,643 customers without power as of 9:30am PT Aug. 21, down from 380,154 Aug. 18, Monford said.The storm caused a considerable amount of wind damage across Pacific Gas and Electric service territory that caused a total of 68,100 customers to lose power, spokesperson Denny Boyles said. The majority of the remaining roughly 12,000 outages were expected to be restored Aug. 21."Most of the severe impacts from the Tropical Storm happened south and east of our territory," Boyles said.San Diego Gas & Electric has about 15,000 customers without power at the peak of outages and most were restored without a few hours, spokesperson Candace Hadley said. By 10:30am PT Aug. 21, there were about 100 storm-related outages remaining."We do not anticipate any further storm related outages at this time; however, situational changes and unplanned outages are always possible," Hadley said.The California Independent System Operator grid is stable with sufficient supplies forecast, spokesperson Anne Gonzales said.Solar generation impacts The cloud cover from the storm significantly decreased solar-powered generation for the CAISO footprint as most solar facilities are located in Southern California.Solar market share plummeted to 4.4% of the total fuel mix Aug. 20, a seven-month low, according to CAISO. Thermal, wind and imports each increased about 2 percentage points day on day to fill in the gap.Solar generation output dropped to 3.715 Aug. 20 but is forecast to jump 173% day on day to a high of 10.131 GW Aug. 21, according to CAISO data. In comparison, solar generation has averaged 12 GW so far this month.Last month, solar generation set a peak record of 15.96 GW July 6, according to CAISO's Key Statistics report for July.Peakload dropped to 30.577 GW Aug. 20, a 42-day low and the lowest daily August load in two years, according to CAISO data.California Governor Gavin Newsom proclaimed a state of emergency Aug. 19 for much of California ahead of the storm's impact. He expanded on Aug. 20 the number of counties under the state of emergency proclamation. Register for our Global Carbon Markets Conference in Paris, France on 6-8 November 2023.

Spanish energy company Iberdrola has ventured into the voluntary carbon market by launching Carbon2Nature (C2N), a new company focused on nature-based solutions, it said Aug. 14. C2N will offer high-quality carbon credits through in-house or collaborative projects that improve biodiversity, nature conservation and restoration. The initiative aims to capture more than 61 million mtCO2e by promoting projects that conserve and restore ecosystems across over 100,000 hectares, including forests, coastal ecosystems and agricultural soils, the statement said. The company will focus on countries where Iberdrola is active. 80% of C2N's projects will be based in Latin American countries such as Brazil, Mexico, Colombia, Peru and Chile while countries the remaining 20% will be in the northern hemisphere, such as Spain, the United Kingdom and Portugal. Carbon2Nature is already working on the development of projects in Brazil, Mexico, Colombia, Chile and Spain. "We come to this new market with humility and a desire to do things differently, bringing all of Iberdrola's experience in sustainability to the world of nature-based solutions and the generation of carbon credits," said Miguel Ángel García Tamargo, director of Carbon2Nature. Iberdrola, which focuses on electric utilities and renewables, is aiming to reach net zero emissions by 2040. Growing scrutiny This comes as many countries and companies are investing in nature, forests, woodlands etc. to shore up climate finance and generate carbon offsets. Nature-based solutions that help remove carbon dioxide from the atmosphere and halt emissions from degraded natural sites and agricultural land have gained popularity in recent years. Voluntary carbon markets are currently facing questions about credibility. The efficacy of some carbon credits, especially nature-based offsets, have recently come under fire from media and academics questioning whether the programs represent genuine carbon reductions. This scrutiny has had a major impact on prices of and demand for nature-based carbon offsets. Platts, part of S&P Global Commodity Insights, assesses a wide range of high-quality voluntary carbon credits that fund projects that demonstrate additionality, permanence, exclusive claim and co-benefits. The Platts CNC assessment -- which reflects the most competitive nature-based carbon credit prices -- reached $2.60/mtCO2e on Aug. 11, up from a record low of $1/mtCO2e on May 29. Platts CNC averaged $9.55/mtC02e in 2022, S&P Global data showed. Join us at the Global Carbon Markets Conference, Paris, France, 6-8 November 2023.

In an interview with Rob Westervelt, editor in chief of Chemical Week Magazine, EQUATE CEO Naser Aldousari discusses the company's ambitious goal of becoming carbon neutral by 2050. Aldousari highlights EQUATE's recent progress in this area, including its commitment to contracting 100% renewable energy to operate its glycol assets in North America.Learn more about how the chemical industry forges a path to carbon neutrality at the for World Petrochemical Conference 2024

The US Department of Energy (DOE) is preparing to allocate billions of dollars for the "unprecedented" establishment of regional hydrogen hubs to kickstart the clean hydrogen economy. Interest is strong and investment is accelerating, but can clean hydrogen be the US’ foundation for a net-zero future or will it be another wayward moonshot?The clean hydrogen boom has arrived — at least in the US — as recent legislation and policy incentives create an on-ramp for project investment. According to the Hydrogen Council, more than 1,040 large-scale hydrogen projects — plants with more than 1 MW of electrolysis — have been announced globally as of January 2023, an increase of 350 new proposals since May 2022.North America accounts for approximately 15% of announced projects, with 135 of the projects aiming to be fully or partially commissioned by 2030, the Hydrogen Council’s Hydrogen Insights 2023 report says. Total direct investments of all North American hydrogen projects through 2030 amount to $46 billion, up from the $29 billion recorded last year.While Europe leads with the most announced projects, North America has the highest percentage of committed investments with 20% of projects already at the final investment decision (FID) stage or beyond, nearly triple the 7% committed in the rest of the world. Although the discrepancy is tied heavily to the North American reliance on low-carbon projects — nearly 75% of announced projects include blue hydrogen, which is produced with natural gas but the CO2 emitted is captured and stored, compared to the rest of the world’s 20% — the tangible push for clean hydrogen in the US can be traced to two recent legislations: the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL).Since 2021, the total announced production capacity has grown 1.5 times faster in North America than the rest of the world.The IRA sets aside $400 billion in funding for the energy industry and also introduces a 10-year advanced manufacturing credit for clean energy projects, including a clean hydrogen production tax credit of up to $3/kg, as well as a credit for $85/metric ton of CO2 sequestered. The bill has catalyzed industrial gases makers to push all-in on massive and many clean hydrogen facilities, by focusing on incentivizing production, allowing for market growth and providing the private sector with the flexibility needed to make significant investments.The BIL has authorized DOE to offer up to $8 billion in funding for 6 to 10 clean or low-carbon regional hydrogen hubs across the US, with the maximum a single hub can receive is $1.25 billion. The DOE has also earmarked $1 billion to improve the efficiency and cost-effectiveness of electrolysis.Of the initial 79 potential hubs that sent in concept papers last fall, DOE encouraged 33 hubs to apply for funding by April 7; at least 21 hubs have confirmed that they have applied ahead of the DOE’s final deadline. The applications details are private and the DOE will release further information when the hydrogen hubs are selected to receive funding in late fall 2023.Under the BIL, DOE is required to select hubs that use diverse feedstocks — renewables, nuclear and natural gas with carbon capture — as well as diverse end-market uses, including industrial and chemicals, the mobility sector and energy generation and be located in geographic diverse areas. Today’s hydrogen demand in North America is driven almost entirely by the chemical and refining industries, all of which is met by gray hydrogen.Specifically, the DOE is intending at least one separate hub to produce green, blue and pink hydrogen, each; at least one hub to provide hydrogen to the power generation, industrial, transportation and residential and commercial heating sectors and at least two hubs to be in regions with strong natural gas.Many of the 21 potential hubs have opted to produce more than one type of hydrogen to diversify and improve their chances, 17 plan on producing green hydrogen, which is generated through electrolysis powered by renewable energy; nine plan on producing blue hydrogen and seven hubs intend to incorporate pink hydrogen, which is generated through electrolysis powered by nuclear energy.Part of hydrogen’s central place in the decarbonization efforts is due to its unique versatility, nimbleness and resilience as well as its importance to the US’ energy leaderships and its ability to reach into high-impact, hard-to-abate sectors, such as chemicals and steel and cement making, Mike Graff, chairman and CEO of Air Liquide American Holdings Inc., said to CW.McKinsey & Co. reports that a mature domestic hydrogen market stands to deliver an estimated $140 billion per year in revenue and 700,000 in new jobs across the hydrogen value chain in the next decade."It is estimated that hydrogen could meet 20% of global energy needs by 2050. Unlocking hydrogen’s future potential though, depends on the choices we make today. For the private sector, that’s dependent on our investments now, and for our public sector, that’s dependent on continuing to establish a policy framework that allows for further market growth," Graff said. "Allowing for flexibility today is so critical to establishing a healthy low carbon hydrogen economy for the needs of tomorrow."Location, location, locationOf the 21 potential hubs, four have a focus on the chemicals sector: the HyVelocity Hub, based out of Houston with support from Louisiana; the HALO Hydrogen Hub, a consortium effort from Louisiana, Oklahoma and Arkansas; the Appalachian Regional Clean Hydrogen Hub (ARCH2) centered in West Virginia, with support from Ohio, Pennsylvania and Kentucky and the Alliance for Renewable Clean Hydrogen Systems (ARCHES) Hub in California."These hubs are critical to the maturation of a robust hydrogen economy — one that will not only make low-carbon hydrogen more accessible and affordable to the industrial users in each region, but also support the existing energy workforce present, while creating new, long-term jobs," Graff said.Air Liquide is a founding member of the HyVelocity Hub, which gives the company a more active role in the formation and governance of the hub; it plays a supporting investment role in ARCH2 that mainly focuses on the development of overall hydrogen efforts in that region, Graff said.The HyVelocity Hub, led by a collaboration of academic, nonprofit, government and industrial groups, proposal would expand, modify and repurpose existing infrastructure to meet growing demand for clean hydrogen in Texas and Louisiana. HyVelocity will use both natural gas with carbon capture and renewables to produce hydrogen."No place in the country has the Gulf Coast’s combination of assets for clean hydrogen generation. [We have] the physical assets of pipeline infrastructure, existing plants and geology ripe for storage, as well as softer factors such as operating expertise and training opportunities," said Brett Perlman, CEO of the Center for Houston’s Future, one HyVelocity’s leading partners.The Texas Gulf Coast is currently producing 3.5 million metric tons of hydrogen per year, one-third of the US’ annual hydrogen production. The region’s existing assets include 48 hydrogen production plants and over 1,000 miles of dedicated hydrogen pipelines, according to HyVelocity. S&P Global Platts has priced the US Gulf Coast hydrogen without carbon capture and sequestration (CCS) at 82 cents/kilogram for April 2023, with Gulf alkaline electrolysis at $2.09/kg and proton exchange membrane (PEM) electrolysis at $2.94/kg.The HyVelocity Hub will begin producing green hydrogen at 14% of its total capacity and increasing the amount over time. The hydrogen produced will be utilized in industrial heating, chemical manufacturing, power generation, marine and transportation. The hub requested $1.25 billion from the DOE and announced they have matched that total with funds raised by its partners.While the influx of public funding is certainly valuable for cutting down start-up costs, Perlman finds that the ‘legitimization’ of these regional hubs by the government will bolster the foundation of the US’ hydrogen economy and cooperation. "We’re tracking over 30 projects over the Gulf Coast — between clean hydrogen and ammonia — what the HyVelocity Hub and other hubs are doing is accelerating the collaboration between those projects, increasing the velocity of clean hydrogen," Perlman said.Due north of HyVelocity, the HALO Hub will focus on green, blue and pink hydrogen, with a request of $1.25 billion from the DOE. The hub will target the industrial, agriculture and power generation sectors.Air Products and Chemicals Inc., the Central Farmers Fertilizer Co. (CF) and NextEra Energy Inc. are the leading partners for the HALO Hub. As an anchor project, CF and NextEra have plans to build a 100-MW electrolysis plant, powered by a 450-MW renewable energy facility, to produce up to 100,000 metric tons/year of green ammonia in Oklahoma.Jason Lanclos, the HALO Hub’s project lead and Louisiana’s Department of Natural Resources State Energy Office director, is optimistic about the hub’s advantages: "the HALO Hub’s infrastructure is viable and already in place across the respective states, with ample natural gas production; robust pipeline networks; rail and river transports; heavy industry that already relies on hydrogen as a feedstock; established ports and trucking centers that could convert to hydrogen fuel and opportunities to take advantage of regional geology to sequester carbon captured from hydrogen production deep underground." The HALO Hub, itself, has over 110 stakeholders in its hydrogen value chain, from feedstock and production to deliver, storage and end-use. Despite this the HALO and HyVelocity Hubs serve similar end markets, with the major differences being HALO’s lean into agriculture and HyVelocity’s heavier focus on chemical manufacturing and heavy-duty transportation.Lanclos also stated that "significant" production is underway at HALO, with new large-scale clean hydrogen projects scheduled to come online within the next couple of years. Like the HyVelocity Hub, HALO has already built out hydrogen value chain — with local producers, transportation infrastructure and consumers — coupled with the low-cost business environment and energy rich history in its three consortium states makes the HALO Hub another hot spot primed for clean hydrogen generation.In the Appalachian region, the ARCH2 will leverage its existing natural gas resources and sequestration potential to produce green and blue hydrogen for use in the industrial, power and heating sectors. Private funding for the hub has not been disclosed.As part of the proposal, ARCH2 will include a blue ammonia plant led by Adams Fork Energy LLC in Virginia. The project, jointly developed by Adams Fork and the Flandreau Santee Sioux Tribe, is expected to start construction in 2024, with initial annual ammonia production capacity of 2.2 million metric tons per year (MMt/y). The Chemours Company has also entered a partnership with the hub and TransCanada PipeLines Ltd. to produce hydrogen by way of PEM electrolyzer at the company’s Washington Works and Belle manufacturing sites in West Virginia.PEM water electrolyzers, the technology being deployed by Chemours at ARCH2, are ideal for pairing with renewable sources of electricity, Chemours’ head of hydrogen economy venture, Stefanie Kopchick said. "The newest PEM electrolyzers can take the electricity generated by these zero-carbon sources and create zero-emissions green hydrogen which can be stored, transported and then used to generate power and support industrial processes wherever and whenever the hydrogen is needed … at better energy [and cost] efficiency than alkaline electrolyzers." Furthermore, PEM electrolyzers’ superior durability, efficiency and versatility make it the best choice for the foundation of a hydrogen economy without any carbon emissions.The ARCHES Hub — led by California’s Governor’s Office of Business and Economic Development — will solely generate renewable hydrogen with the aim of producing 500 metric tons/day by 2030 and scaling to 45,000 metric tons/day by 2045 for use in especially difficult to decarbonize power plants, heavy-duty transportation and port operations. The hub bid is aiming to win the DOE’s renewable hydrogen hub slot and the hydrogen produced will be used to grow California’s clean energy economy and hydrogen infrastructure on the West Coast.ARCHES is requesting $1.25 billion from the DOE and will provide private funds of $4.75 billion. Uniquely, ARCHES does not intend to initially incorporate facilities in its cluster to produce clean ammonia, prepare hydrogen for use in residential homes or blend hydrogen into existing natural gas pipelines."ARCHES is initially focused on … hydrogen fuel cell technologies [, which] are the most promising zero-emissions solution for medium and heavy-duty vehicles and port equipment. Renewable clean hydrogen is also the most scalable zero-carbon alternative to natural gas for use in gas power plants required by state planning to remain operational to ensure reliability. Hydrogen is an important complement ... needed to reach California’s clean air, clean energy, and climate goals," the hub said.Missing the moonshotAnother wrinkle of the DOE’s plan is its ‘Energy Earthshots,’ moonshots designed to rapidly spur clean energy breakthroughs. The first of seven — the Hydrogen Shot — seeks to reduce the cost of clean hydrogen by 80% from roughly $5/kg to $1/kg in one decade.To come close to this ambitious goal, clean hydrogen supply must skyrocket, and currently, even with the flurry of announcements, committed projects lag behind targets. Despite the regulatory momentum, producing clean hydrogen is more expensive today than it was two years ago in the US, due national average power purchase agreement prices nearly doubling from 2020 to 2022, labor costs increasing 20% and a two- to fourfold increase in gas prices.Even with the national interest in clean hydrogen booming, the "significant" costs of infrastructure development and realizing economies of scale through proper demand and production volumes will present real tethers to any moonshot hope of the DOE’s $1/kilogram clean hydrogen goal, Lanclos said.Additionally, the DOE, on May 24, 2023, released its seventh ‘Energy Earthshot’ — the Clean Fuels & Products Shot — which is seeking to meet the 2050 net-zero emission demands for 100% of aviation fuel; 50% of maritime, rail and off-road fuel and 50% of carbon-based chemicals by using sustainable carbon resources, putting clean hydrogen’s touted usage as a net-zero driver to the test. In particular, the program targets three of the hardest sectors to decarbonize — transportation, industrial and chemicals .To track this net-zero scenario, by 2030 there needs to be an increase of more than twenty-fold of committed capital to boost clean hydrogen supply globally. In the US, to achieve its net-zero economy by 2050, it will need to increase the installation of its renewables four times to reach its required 900 GW of renewable energy.The real test of the hydrogen ecosystem will happen when the IRA sunsets, as the Hydrogen Council anticipates that after 2032 — when the IRA’s incentives go away — despite all the innovation, scale-up and build out of manufacturing and supply chains, renewable hydrogen will still be more expensive than gray hydrogen. Because of this, many offtakers are hesitant to sign long-term contracts, and without policies to mitigate risks for offtakers, demand acceleration will slow.While the IRA and BIL will be key to expediting the accessibility of green hydrogen to more consumers for the first time, adoption will still have its stop-and-start growing pains. "There are going to be plateaus where current incentives will need to be increased for everyone from OEMs to the end-users themselves. With each phase we will meet a slightly more hesitant population that will need more incentives, more intense education and greater demonstration of how use of green hydrogen is beneficial to bring them on board," Kopchick said."How far the [IRA and BIL] take us is still an open question. Will it be enough to start a snowball effect? Well, we’ll have to wait and see," Perlman said.Infrastructure insufficiencyTime is winding down on 2030 climate goals, as the DOE’s funding process and build out period for the hubs will take around 12 years to finalize, with each of four stages taking an increasing amount of time. Awardees will receive up to $20 million in stage one, then after a "negotiated go/no-go" process can receive up to 15% of requested funds in stage two, in stage three — a phase that can take up to two to three years itself — the hubs will be rewarded the remaining 85% of funds on an undefined schedule before starting stage four where the hubs will transition to their operational stage.With a possible recession looming in the US, the industry is maturing during a time of strong headwinds that could slow deployment, including strained supply chains, labor shortage, energy performance contracting capacity, increasing inflation and permitting delays, the Hydrogen Council said.Besides curbing costs, to be part of the energy transition, especially in the US, clean hydrogen infrastructure needs to be rapidly built out. The US has thumbed one-third of its total hydrogen production to be renewable by 2030, an impossibility to implement without proper pipelines and transportation channels.However, the US only has 1,600 miles of hydrogen pipeline currently, with most of it along the Gulf Coast.The Hydrogen Council has suggested that to reach the US’ long-term goal of moving 60% of hydrogen production through pipelines by 2050, the country would need approximately 10 north-south and five east-west pipelines to connect its potential hydrogen hub clusters, which the Hydrogen Council tabs as a $100 billion cost. Actual investments in US hydrogen infrastructure projects until 2030 total only $3 billion.IRA aftermathThe IRA has started a chain reaction in capital expenditure (capex) explosion for the leading gases makers, propping the US up as the potential clean hydrogen leader over Europe: Air Products could potentially invest $100 billion in clean hydrogen and ammonia over the next 10 years and Linde plc said it sees the potential to invest more than $50 billion worldwide in the next 10 years to support the clean energy boom, with more than $30 billion to be in the US.Air Liquide hasn’t inked a number, with Graff adding that the company focuses on a customer-driven approach for capex versus a "built it and they will come" mentality. Company chairman Benoit Potier said in a call to shareholders that "there’s no growth in our business without investment.... The real question that arises for us is to know [how many billions] are needed if hydrogen is to accelerate sharply."Air Liquide, Linde and Air Products have partnered with six, four and one of the proposed DOE hubs, respectively.The real boon of the recent legislature Perlman said, is not just incentives or the funding but that it "brings us out of a vacuum. Clean hydrogen cannot be feasible without strong, collaborative interconnected clusters.""While the amount of investment and technological advancement needed to accomplish the 100% substitution of clean energy for fossil fuels by 2050 is substantial, no plan to accomplish that appears possible without clean hydrogen," Kopchick said. The clean hydrogen venture is bold and new, Kopchick continued, which makes it enticing, but it also makes it risky: "inherent challenges exist in the concept of ‘not knowing what we don’t know’."Correction: An earlier version of this article referenced HALO’s private funding as $1.25 billion. HALO has not publicly disclosed this figure.For more insight and news on decarbonization and the chemical industry visit check www.chemweek.com

Saif Humaid al Falasi, CEO of Emirates National Oil Co. Group, spoke to S&P Global Commodity Insights Editorial Lead Claudia Carpenter about how the company is helping to support the UAE’s net-zero emissions target by 2050. Interview included in Commodity Insights Magazine. View full issue

Germany is preparing for Climate Contracts for Difference (CfDs) auctions backed by a €50 billion scheme to support decarbonization of steel, cement and chemicals among other sectors, energy minister Robert Habeck said on June 5. Tender details will be published today, opening a two-month window for companies to express interest, Habeck said at a press conference in Berlin."With the climate protection agreements, we are heralding the transformation of Germany as an industrial location...[and] ensure that the funds flow to where they are needed for the transition of industry and bring the greatest benefit," Habeck said in a statement.The 15-year climate CfDs are designed to help industries fund the gap between market prices and decarbonization project costs. Following expressions of interest and talks with the finance ministry as well as the European Commission, the German energy ministry would invite companies to bid for the contracts, it said.The lowest bids for the highest CO2 reduction are to be awarded up to a certain threshold, Habeck said. Specific details are yet to be decided partly based on expressions of interest in the preparatory procedure.Habeck described the scheme as part of Germany’s answer to global support schemes such as the Inflation Reduction Act (IRA) in the US. Berlin is in close contact with the commission on state-aid clearance procedures, Habeck added.The energy ministry's scientific advisory council warned in February about some negative side effects of the instruments such as potential overfunding, hampering competition and hampering the development of new technologies. Habeck said the initial concept has been fine-tuned over recent months and flagged a lower carbon savings threshold to allow smaller companies to participate with a new 10,000 metric ton CO2e per year savings threshold for participation.EUA carbon allowance prices rose above €100 per metric ton for the first time in February, but have fallen back below €80 per metric ton. Platts, a unit of S&P Global Commodity Insights, last assessed the December 2023 contract at €78.99 per metric ton on June 2. Analysts at S&P Global forecast EUAs to average about €82 per metric ton in 2023, marginally above the 2022 average, which soared 52% on 2021.German industry needs to reach a 118 million metric ton (MMt) target in 2030, according to Germany's climate-law setting annual sector-specific emission thresholds to 2045. In 2022, emissions fell 10% on year to about 164 MMt, according to preliminary data. Habeck estimates about 350 MMt of CO2 savings from industry under the scheme through 2045.Climate CfDs are designed in a similar way to hedging contracts with the state taking the risk pending price developments in new energy-transition technologies. The focus is on hydrogen and emission prices to allow companies to make necessary climate investments based on competitive input prices in relation to traditional technologies. Should market prices rise or fall below bid prices required for the investment, companies would need to repay support to the state.Price projections for EU carbon allowances and decarbonized hydrogen over the 15 year contract period vary significantly and are likely to change significantly from current market trends. Platts assessed green ammonia production delivered to northwest Europe from the east coast of Canada at about $739 per metric ton in April based on levelized cost-of-electricity projections.That compares with $407 per metric ton for grey ammonia CFR northwest Europe in April on average, according to S&P Global.For more insight and news on decarbonization and the chemical industry visit check www.chemweek.com