Page 175 - CW E-Magazine (10-10-2023)

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CHALLENGES AHEAD FOCUS ON SAFETY & SUSTAINABILITY

Lagging policy support and rising cost pressures put ICCA announces global ambitions on the future of

investment plans for low-emissions hydrogen at risk: IEA chemicals management

Momentum behind low-emissions decision or are under construction, total by creating new industrial supply chains. The International Council of Chemi- Mr. Chris Jahn, the ICCA Secretariat
hydrogen continues to grow despite capacity could more than triple to 2-GW Government funding programmes are cal Associations (ICCA), which chemi- and President and CEO of the Ameri-
the slow roll-out of fi nancial incentives by the end of 2023, with China account- already available through schemes such as cal manufacturers around the world can Chemistry Council added, “As we
and stubborn cost pressures that threaten ing for half of this. If all announced the US Clean Hydrogen Production Tax who account for more than 90 percent move forward, we will be setting goals
to delay projects, according to new projects are realised, a total of 420-GW Credit, the European Union’s Important of global chemical sales, has announced for each ambition to keep industry on
report from Paris-based thinktank, Inter- could be achieved by 2030, an increase of Projects of Common European Interest, the launch of three high-level ambitions track, and will actively engage with the
national Energy Agency (IEA). But 75% compared to the IEA’s 2022 review. and the UK Low Carbon Hydrogen Busi- on the sound management of chemicals governments, NGOs and other stake-
production levels can still increase sub- ness Model. However, the lengthy time and waste ahead of the UN conference holders as we are taking action. This
stantially by 2030 if all announced pro- “We have seen incredible momentum lags between policy announcements and that will defi ne the future of “Beyond cannot be done by industry alone and
jects are realised and greater efforts are behind low-emissions hydrogen projects implementation are causing developers 2020 Instrument”, the global UN-led and President of ExxonMobil Product we look forward to working with all
made on encouraging uptake, it said. in recent years, which could have an im- to delay projects. Annual production of policy framework to promote chemical Solutions said, “ICCA has long been stakeholders to ensure that the work
portant role to play in energy-intensive low-emissions hydrogen could reach 38- safety around the world. a strong supporter and contributor to done is thoughtful and effi cient.”
The number of announced projects sectors such as chemicals, refi ning and million tonnes per year in 2030, if all the Strategic Approach to International
for low emissions hydrogen contin- steel,” said IEA Executive Director announced projects are realised, with almost ICCA has articulated the following Chemicals Management (SAICM) and Beyond the ambitions, ICCA mem-
ues to expand rapidly while more than Dr. Fatih Birol. “But a challenging economic three quarters of it coming from electroly- three ambitions: the industry has achieved signifi cant bers will continue to engage in and sup-
40 countries worldwide have set out environment will now test the resolve of sers running on renewable energy and the  By 2030 we will have provided progress in building capacity on safe port the sound management of chemi-
national hydrogen strategies to date. Yet, hydrogen developers and policymakers remainder using fossil fuels with carbon access to available data on the safety chemicals management in developing cals and waste and the adoption of the
installed capacity and volumes remain to follow through on planned projects. capture, utilisation and storage. The best and sustainability of our products. countries over the past years. Yet we new framework at the International
low as developers wait for government Greater progress is needed on techno- prospects for low-emissions hydrogen use  By 2030 we will have supported know that more needs to be done to Conference of Chemicals Management
support before making investments. logy, regulation and demand creation to are in hard-to-abate industrial sectors, by 30 countries to implement effective ensure that all people enjoy the same high (ICCM5) conference in Bonn, Germany.
As such, low-emissions hydrogen still ensure low-emissions hydrogen can rea- replacing hydrogen produced from unaba- chemical management systems. standards of chemical safety, regardless These high-level ambitions were at core
accounts for less than 1% of overall lise its full potential,” he added. ted fossil fuels, but progress has been slow.  By 2030 we will actively guide of where they live. Our high-level of the industry’s negotiating position
hydrogen production and use, accord- product portfolios, including pro- ambition will show, through action, that during the ICCM5 conference. The imple-
ing to the latest edition of the ‘IEA’s an- Low demand for clean hydrogen The lack of attention to hydrogen cesses, toward sustainable solu- we will continue to be a willing partner mentation details of these ambitions will
nual Global Hydrogen Review 2023’. Beyond the challenges facing manu- demand creation is illustrated in exist- tions. with all stakeholders to the advance- depend on the outcome of international
Against the backdrop of a global energy facturers and developers, the report also ing country commitments. The sum of ment of the new framework’s objec- negotiations and the fi nal agreement on
crisis, high infl ation and supply chain fi nds that efforts to stimulate demand all government targets for low-emis- Ms. Karen McKee, ICCA President tives.” the Beyond 2020 Instrument.
disruptions, new projects face rising for low emissions hydrogen are lagging sions hydrogen production accounts for
costs, at least temporarily, that threaten behind what is needed to meet climate up to 35-million tonnes today, but tar- Logistics4Pharma expands warehousing services
long-term profi tability. Infl ation and ambitions. Hydrogen use globally reached gets for creating demand account for just
more expensive borrowing costs are 95-million tonnes in 2022, an increase of 14-million tonnes, only half of which is in Germany
affecting the entire hydrogen value chain, nearly 3% compared with the previous focused on existing hydrogen uses. Direct
driving up fi nancing costs for developers year. There was strong demand growth purchase agreements with private sector Logistics4Pharma, a specialist in vices near Frankfurt airport. The full pharmaceutical shipments intended for
and reducing the impact of government in all major consuming regions except consumers are beginning to emerge but pharmaceutical cold-chain warehousing scope of our logistics services now European markets and can do so only
support. This confl uence of factors is Europe, which suffered a hit to industrial remain at a very small scale.The report and logistics, has completed a reloca- includes airport pick-up, customs clea- after their products are sold to speci-
particularly detrimental for an industry activity due to the sharp increase in natural suggests several steps for governments tion to a larger bonded warehouse in rance, transfer to and from our bonded fi c customers,” added Mr. Julius von
that faces high upfront costs related to gas prices. However, uptake of low emis- to reduce risk and improve the economic Kelsterbach, Germany, in April 2023, temperature-controlled warehouse, and Pfeil, Head of Supply Chain and
equipment manufacturing, construction sions hydrogen remains very limited, feasibility of low-emissions hydrogen while simultaneously expanding the customised repackaging for air trans- Finance. “Where needed, we can assist
and installation, the report said. accounting for only 0.6% of total hydrogen such as effective delivery of support range of services. This carries for- port, ensuring DG IATA compliance for our customers without third-party agent
demand. As a result, hydrogen produc- schemes, bolder action to stimulate ward from October of last year, when temperature-sensitive pharmaceutical brokers, eliminating the risk of sharing
Despite economic headwinds, de- tion and use in 2022 released some 900- demand, and addressing market barriers GDP-compliant bonded warehouse goods,” said Mr. Kees Schmidt, Head sensitive customer data such as invoices
ployment of electrolysers is beginning to million tonnes of CO to the atmosphere. such as licensing and permitting. More- services were fi rst introduced. of Operations & Customer Service. with external parties and streamlining
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accelerate. By the end of 2022, electro- over, establishing international markets operations by having a single point of
lyser capacity for hydrogen production The report outlines how low-emissions in hydrogen requires cooperation to “By early 2023, it became evident “With our bonded status, inter- contact overseeing all imports, incoming
reached almost 700-MW. Based on pro- hydrogen can be an opportunity for coun- develop common standards, regulations that a larger facility was imperative to national customers are no longer goods, and storage processes up to the
jects that have reached fi nal investment tries to boost their economies for the future and certifi cations. meet the rapid demand for these ser- compelled to immediately nationalise fi nal dispatch,” he added.

174 Chemical Weekly October 10, 2023 Chemical Weekly October 10, 2023 175

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