On this week's episode of #TruthtoPower, IntelStor's Founder & CEO, Philip Totaro investigates the feed in tariffs, public finance and capital efficiency of the global chemical heat & #hydrogen market from the IntelStor Future of Renewables #marketresearch Report.
While there have been cutbacks since 2019, particularly in Africa & the Middle East, there is still around $600 million per year which is provided to support project developments. The funding provided in Africa & the Middle East is particularly concerning. Spread out since 2005 for a period of 13 years, the region has seen a total of US$14.2 billion on studies to investigate capacity ramp up in the region using either chemical heat or hydrogen based techniques.
Overall, capital efficiency is relatively good for chemical heat and hydrogen with only $27,000 per installed megawatt being spent in the Asia Pacific region. That is comparable to the best performing renewable energy technologies when it comes to leveraging public finance. The total for Africa and the Middle East at US$244,000 / MW in public finance is somewhat deceptive.
This figure only includes the capital pledged for the capacity actually installed. Since the bulk of the US$14.2 billion which has been allocated in Africa has not yet been installed, it is merely wasted expenditure at this point. This is one of the worst examples of wasted public funding allocation in the entire renewable energy sector, and something that needs to be more thoroughly investigated to ensure this has not been provided to countries with no potential for commercial exploitation of chemical heat or hydrogen technology.
This show examines data driven insights for the energy sector, with a focus on renewables. To subscribe to IntelStor Research Notes and get early access to our latest content as well as these Truth to Power weekly editorials, visit https://lnkd.in/e98Z9qs3