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Blue Hydrogen Could Become the White Elephant on Your Balance Sheet

  • Green hydrogen will be able to undercut price of blue by 2030
  • Scale can be advantage for producers, but only for so long
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No investor, lender or company wants a white elephant sitting on their balance sheet. An asset that looked good at the time, but is now out of the money, rendered uncompetitive by operating costs that are higher than prices in the market. It’s every investor’s nightmare.

Many oil and gas investors lived through this kind of nightmare in 2014, when the oil price crashed from over $100 to under $50 a barrel, and then stayed there for three years. Tens of billions of dollars worth of projects, built when prices were high – like Shell’s Curtis LNG and Santos’s Gladstone LNG – haemorrhaged cash until the oil price recovered.