Greensight's analyses bases itself on 6 main ideas about the energy transition and hydrogen market. These make out our assumptions about the market and future changes within the hydrogen space.
Our approach to the green transition
Greensight uses a technology-based approach to establish business cases and create value for hydrogen projects. We base ourselves on a bottom-up methodology where technology is the key for building our models and analyses. Combining technology and hand-on experience with strong market knowledge and economical competence we provide the tools to assess projects throughout the hydrogen value-chain.
Economy of Scale
Increasing the size of production facilities enables significant cost reductions on a per kilogram basis as there are numerous shared assets that are required regardless of the size of the plant.
Pure hydrogen is challenging. It's a tiny molecule that can slip through cracks, and always seeks other molecules such as oxygen to combine with. This is why we believe in the application of hydrogen carriers such as Ammonia & LOHC which offer not only simpler handling, but also significantly increased volumetric density.
Production of green hydrogen by water electrolysis is a known technology – but we still have a long way to go. We believe two key technological changes will advance the hydrogen shift; the increases in the efficiency of hydrogen production, and decreases in the cost of electrolysers. This will loosen the constraints on the technologies capacity and ultimately lead to even lower hydrogen costs.
Changes in the energy market
As variable renewable energy types continue to increase in market share, we will head into more variable pricing since the wind and sun will have large fluctuations in production. his will inherently result in overproduction since it cannot be controlled. This will lead not only to the need of robust, long term energy storage, but also better cost opportunities for hydrogen producers.
Policies are being implemented on both sides of the market, pushing forward the shift to greener business. On one side the taxation and closing of markets will affect those who continue non-renewable activities. On the other side the subsidization and the opening of markets to insentivise renewable activities.
Consumer sentiment is shifting. Going towards green and away from anything grey. This shift is forcing organizations to reevaluate their practices and shift their efforts. This will result in increased production of renewable resources, leading to greater economies of scale for these technologies. Consumers will encourage companies to focus their own supply chain purchases towards sustainable products, despite the current increased financial burden.