Illustration: Aïda Amer/Axios
Making green hydrogen is one thing, moving it to where it needs to go is an entirely different challenge.
Why it matters: Transporting the low-carbon gas was a key topic of conversation at the MIT Energy Conference in Boston this week.
The big picture: Both investors and founders are optimistic about hydrogen, but cautious:
- "We're hopeful, but it's been slow," one founder told Axios, an observation others echoed.
Of note: With tech ready to deploy, red tape rather than funding has followed.
- "In the past, it was about developing more efficient technologies and finding the funding. Now it's about the permitting," a climate consultant said on the sidelines of the event.
- The permitting challenges are interfering with building the pipelines needed to transport the hydrogen.
- "We need to invest a huge amount in distribution and storage." Belén Linares Corell, innovation director at Acciona Energía, said on a panel.
Yes, but: Incentives in the Inflation Reduction Act make hydrogen blending with natural gas a potential cost-effective option — meaning it could be moved through existing pipeline networks.
- Projects that are making hydrogen at $4 or even $4.50 per kilogram "start to make sense," as incentives drop the price to near-parity with natural gas, said Supratim Das, a senior associate at Electric Hydrogen.