News Release

Hydrogen hype meets reality in EIR’s inaugural fundamentals report

Investment landscape, regional and project asset quality, technical and execution risks, identified in early-stage projects

byEnverus

CALGARY, Alberta (April 3, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, is releasing its inaugural Hydrogen Fundamentals report that evaluates the U.S. clean hydrogen opportunity at national and regional levels. In this comprehensive analysis, EIR assesses the investment landscape, regional and project asset quality, technical and execution risks, and the innovation ecosystem that fosters this developing technology.

Synchronization across three key pillars is key to a successful strategy, said Alex Nevokshonoff, senior associate with EIR.

“First, top performing projects need exposure to superior asset quality, including proximity to abundant and low-cost resources, such as renewable power generation, carbon storage and natural gas basins,” Nevokshonoff said.

“Second, robust innovation ecosystems enable constructive regulatory and policy frameworks which incentivize capital flow towards hydrogen, accelerate the learning curve and drive cost reductions. Finally, supportive partners reduce offtake uncertainty, which minimizes financing risks and project development delays,” Nevokshonoff said.

Key takeaways:

  • EIR estimates 96% of tracked U.S. clean hydrogen capacity skews to early-stage projects, indicating that the nascent industry still has a long way to go to become a serious contender for capital.
  • Unsubsidized economics favor blue hydrogen production over green in EIR study areas in the Texas Gulf Coast and Appalachia. Investors should target Texas developments based on superior value chain asset quality and offtake opportunities.
  • Subsidized blue hydrogen costs fall below gray for select technologies and capture configurations, creating attractive carbon management opportunities for gray hydrogen producers.
  • Supply in the U.S. far outdistances demand, evidenced by the fact that only 30% of tracked L48 projects with in-service dates through 2030 disclose customers. However, the European Union’s decarbonization targets could provide a significant market for U.S. exports.
  • Roughly 60% of projects expected online by 2030 rely at least partly on novel hydrogen applications including mobility and power.
Enverus-graph-showing-resource-analysis-for-US-clean-hydrogen-evaluation

EIR’s analysis pulls from a variety of Enverus products, including Enverus Intelligence® Research, Enverus ESG® Analytics, Enverus Foundations ® Power & Renewables, Enverus Fusion® Connect, Geoscience Analytics and Subsurface Studio.

Additional Resources:

You must be an Enverus Intelligence® subscriber to access this report.

About Enverus Intelligence Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.

Media Contact: Jon Haubert | 303.396.5996

View all press releases at Enverus.com/newsroom.

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