America and Europe have been strong trade partners for hundreds of years. A new venture to ship clean hydrogen across the Atlantic Ocean is set to bring the relationship into a greener and more environmentally friendly era. World and industry leaders are realizing that hydrogen holds the key to averting major climate disasters, and Europe wants 10 million metric tons of it every year by 2030. America’s Gulf Coast states are ready to provide it.
Corporations band together to ship clean hydrogen across the Atlantic from America to Europe
20 corporations have come together to form the H2TC, the Hydrogen Trade Coalition. Major players such as Shell and Apex Clean Energy joined the coalition to demonstrate their commitment to a cleaner planet with a shift away from fossil fuels. These corporations will work with the respective governments of America and Europe to streamline the transportation of hydrogen from America’s Gulf Coast to Northwestern Europe.
The H2TC has ambitious goals. The coalition wants to start shipping hydrogen by 2026. To do that, the corporations involved will need to scale up production on America’s Gulf Coast and ensure that proper infrastructure is in place for transporting the valuable fuel. Participating companies receive benefits from the H2TC, including:
- Access to up-to-date knowledge of regulations
- Capital market integration
- Supply and demand matching
The mission of shipping hydrogen to Europe aims to help American companies scale up production of hydrogen. The demand for hydrogen is booming in Europe, and this collaboration may help keep costs manageable for European entities.
America’s Gulf Coast wants to provide up to 10 million tons of green hydrogen to fill Europe’s quota by 2030
Europe is struggling to increase hydrogen production in the region. Because the continent is relatively more crowded, it’s been difficult to develop the necessary infrastructure. Fortunately, America’s Gulf Coast states already have pipelines in place from the oil trade, and the region has access to low-cost renewable energy such as solar, wind, and hydropower. With these building blocks in place, The Gulf Coast states are ready to power up green hydrogen production to fill Europe’s quota of 10 million metric tons by 2030.
The Biden Administration invested heavily in renewable energy. Considering that the climate crisis is only getting worse, many Americans are keen to transition to green power. With tax incentives from the Inflation Reduction Act, Gulf Coast power companies are looking forward to pursuing clean hydrogen production.
Hydrogen production needs to go green if the world has any hope of avoiding a climate catastrophe
To the casual observer, it may seem as if the world is suddenly obsessed with hydrogen. However, scientists have pointed to this element as a powerful clean energy source for more than a hundred years. The problem is that most hydrogen production is not 100% clean right now because the cheapest way to make it is by reforming natural gas (methane), and the byproduct is CO2.
For the Transatlantic shipping highway to work, Europe will require the production of hydrogen in the U.S. to be cleaner, either low-carbon or zero-carbon emissions. The plan in America is for Gulf Coast states to capitalize on renewable energy sources such as solar and wind to generate electricity for a process called electrolysis, splitting water molecules into hydrogen and oxygen. Embracing clean hydrogen production will help the world avoid a climate catastrophe.
Many industries in the world cannot rely on variable solar and wind energy to keep up with business. That’s why so many companies are shifting their focus to hydrogen, which offers the high combustion temperatures needed in manufacturing and transportation. The H2TC is an innovative collaboration between traditional corporations and green businesses that shows the world is ready to embrace a green future.
