• AMERICAS: US DOE starts accepting hydrogen hub applications amid stiff competition
• EUROPE: Cost pressures threaten UK's falling CFD bid trend
• ASIA: G7 energy ministerial throws lifeline to gas, highlights geopolitical risks

The US Department of Energy's process to establish hydrogen hubs reached a critical milestone April 7 when regional groups submitted final applications federal funding. The DOE has declined to reveal the identities of applicants, or the total number of applications received. However, several hub candidates announced submissions last week shining a light on the competitive field of hub hopefuls. Meanwhile, US hydrogen producers and stakeholders are waiting with bated breath as the Treasury Department writes the rules that will govern hydrogen tax credits promised under the Inflation Reduction Act, and which will dictate how hydrogen's carbon intensity levels are measured, when published this season.

Rising costs are set to reverse the multi-year trend for falling bids in the UK's latest auction for green power contracts. "The current ceiling price of GBP44/MWh proposed in [the fifth CFD round] is going to be tight for developers — given that regulatory barriers, global inflation and the very real prospect of supply chain bottlenecks, continue to drive project costs upward," Will Sheard, director of analysis and due diligence at consultancy K2 Management, told S&P Global Commodity Insights. Meanwhile bids in a first European renewable hydrogen pay-as-bid auction later this year will be capped at Eur4/kg ($4.36/kg), according to draft criteria published by the European Commission. The cap looks to have been set with one eye on US incentives under the Inflation Reduction Act, where green hydrogen can receive a $3/kg tax credit.

In Asia Pacific, attendees at the G7 Ministers' Meeting on Climate, Energy and Environment in Sapporo, northern Japan, agreed on pursuing net zero goals through "various pathways" and ensuring energy security through steps such as accelerated energy transition. Some of the major takeaways were conciliatory language acknowledging that some natural gas investment is "appropriate" to address shortages amid the ongoing Russia-Ukraine war; and countering the impact of geopolitical risk on supply chains for critical minerals for energy transition amid growing US-China tensions. The venerable IEA also changed its tone from calling for "no new investments in oil, gas and coal" to "new investments remain necessary". Meanwhile, the Australian government's State of Hydrogen report highlighted concerns about losing the green hydrogen race to rivals and achieving the goals of the national hydrogen strategy. -- Eric Yep

North America

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US hydrogen hub applicant field begins to emerge after DOE deadline

Treasury's hydrogen tax credit guidance needs to 'strike the right balance': think tank

Global offshore wind power projects could be delayed amid cost increases: CEOs

EMEA

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Biomethane set for big growth in Europe but likely to face use case, regulatory challenges

BP acquires 40% stake in Harbour Energy's North Sea Viking CCS project

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Cost inflation creates new bidding dynamic in UK renewables auction

European Commission sets draft hydrogen auction ceiling bid price at Eur4/kg

Asia Pacific

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Australia falling behind in global clean hydrogen race: report

G7 ministers agree on 'various pathways' for net zero, energy security

China to raise share of non-fossil fuels in total energy mix to 18.3% in 2023

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South Korea revises 2030 target for greenhouse gas emissions

UK, South Korea in energy transition accord focused on civil nuclear, offshore wind

Quotes of the week:

"EPA's choice to fixate on tailpipe emissions rather than full fuel and vehicle lifecycle is a huge error that will stymie investment and artificially cap the potential of carbon abatement for liquid fuels and vehicles on the road today." --American Fuel & Petrochemical Manufacturers President and CEO Chet Thompson said in a statement.

"Biogas is the province of farmers or sewage treatment companies generally. Managing manure is going to be right out of the comfort zone of utilities and energy majors" -- Deborah Mann, senior director of gas, power and climate solutions at S&P Global Commodity Insights

"The crisis has reminded policy makers and energy consumers of the immediate importance of stable and affordable natural gas supplies. The traditional arguments in favor of gas -- its role as a reliable partner to the clean energy transition and its ability to step in to fill the gap left by declining coal and oil -- are also being tested." – International Energy Agency's report on gas markets and investment.

Price of the week:

$4.60/kg

South Australia alkaline hydrogen prices spiked April 13 on the back of lower renewables output

Charts of the week:

Note: Commentators doubt UK offshore wind bids can continue to fall in today's commodity markets

Clean hydrogen prices