Hydrogen will almost certainly be a key factor in the energy transition; however, more than 95% of hydrogen production today is “grey” hydrogen produced by Steam Methane Reforming (SMR), which is highly emitting. The US Department of Energy forecasts that neither green hydrogen (from electrolysis of water) or blue hydrogen (from SMR with carbon capture) will be able to deliver hydrogen for much below $2.00/kg, let alone the SMR cost of $1.28/kg. LTEOIL is already close to par with SMR hydrogen, with the significant benefit of co-producing valuable solid carbon with net zero emissions, creating a new color of hydrogen: teal.
In 2021 U.S. Energy Secretary Granholm launched the Hydrogen Energy Earthshot (echoing John F. Kennedy’s 1962 “moonshot” speech), which called for an 80% reduction in hydrogen prices by 2030. While steam methane reforming produces hydrogen at a cost of $1.28/kg, neither green hydrogen (at $2.16/kg) nor blue hydrogen (at $1.95/kg) are forecast to meet Secretary Granholm’s challenge. LTEOIL is already approaching cost parity with SMR hydrogen, with the significant benefit that inexpensive hydrogen is a byproduct of valuable solid carbon nanomaterial production. Additionally, the LTEOIL hydrogen process qualifies for the maximum Inflation Reduction Act tax credit of $3/kg for clean hydrogen production.
