A new report from the World Bank and partners proposes a series of levers to help bridge the finance gap for clean hydrogen production projects. Although clean hydrogen projects emerging markets and developing countries account for 40% of the global pipeline and could attract investment of up to $100 billion per year, a significant finance gap exists to push these projects to “FEED-plus”.
Discussions will commence for the supply, purchase, and sale of ammonia from two of CIP’s ongoing mega-projects - St. Charles in Louisiana and Murchison in Western Australia - to Lotte in South Korea. Meanwhile, Lotte has selected KBR’s synthesis technology for its hydro-ammonia production project in Malaysia.
More than €4.7 billion is now available to support the growth of hydrogen derivative imports to the EU. Via its implementation entity Hintco, H2Global has already launched a series of auctions to fund ten-year purchase agreements for methanol, ammonia and SAF.
New industry partnerships between suppliers, offtakers and existing infrastructure owners will boost confidence for project developers in the fast-growing renewable ammonia industry. Recent announcements from Namibia, Germany and Norway demonstrate that a comprehensive ammonia supply chain is being established between Europe and key global locations, making FID & project investment decisions more straightforward.
Key elements of Japan’s Green Transformation (GX) push have been unveiled, including policy support for the implementation of ammonia energy solutions, and a $1 trillion total public-private investment package. A subsidy scheme to address the price difference between hydrogen, ammonia and fossil fuels is included, with a nominal price tag of $36 billion, running into the 2030s.