Industries such as steel, cement, and heavy transport account for some one-third of global greenhouse gas emissions (GHG), rendering breakthrough zero-carbon industrial products one of the most valuable assets of the world’s climate change portfolio. Heavy carbon emitting manufacturers all over the world are making the switch to cleaner industrial processes such as low-carbon electricity for industrial heat and hydrogen-based steelmaking. These companies are desperate to find a new technology that enables this. While quality control remains paramount, lower GHG-emitting industrial products have become the preferred choice.
At the leading edge of this transformation is a North American company, GH Power, that has developed four high-quality zero-carbon industrial products: zero-carbon electricity, zero-carbon hydrogen, zero-carbon iron and zero-carbon high-purity alumina.
GH Power and its team of engineers are bringing the worlds of green hydrogen, green alumina, and exothermic heat that can be fed into the grid using proprietary reactor technology that relies on only two inputs: scrap aluminum and water, which generates zero waste and zero Scope 1 carbon emissions. And a new partnership launched in January adds further credibility to industries as they make the switch. At the beginning of 2024, GH Power partnered with Fresh Coast Climate Solutions, a premier carbon consultant, to develop a comprehensive 3rd party verified green certification and assurance program that could catapult zero-carbon industrial products to a new level. Fresh Coast Climate Solutions provides independent reviews of the climate impacts of a range of clean technologies for global technology startups, technology accelerators, and climate investors.
Last year, GH Power showcased the first 100% green hydrogen power technology. This year, it is hoping to forge a path that offers a mark of excellence for its zero-carbon solutions through certification for industries that adopt its products. This could give users of their products 3rd party assurance of offsets for their own carbon emissions.
The New Industrial Renaissance
The latest Accenture research shows that less than 18% of companies are on track to reach net zero emissions by 2050. The big push is about to come now.
According to Accenture, “just three years of intensive cross-industry collaboration can turn industrial decarbonization from an immovable economic barrier to an economic force compelling all industries to accelerate net zero action.”
Heavy industry (steel, metals, mining, cement, chemicals, freight, and logistics) generates 40% of total global CO2 emissions, but Accenture is confident that new decarbonization strategies will enable growth for these industries.
Industry is responsible for 35% of the U.S. energy consumption. The implications of that are vast. That’s why manufacturers are under immense pressure to switch to low- or zero-carbon products in their production processes.
Of course, industry does nothing if there’s no profit to be made or if it adds product or quality risks while doing it. While the benefit to the world is a drastic reduction in emissions on the front line of the climate change battle, for industries, there are growing financial incentives—both carrot and stick.
The EU is employing a stick in the form of carbon border charges for products produced using dirty inputs and inefficient technologies.
In North America, it’s more about carrots, though. This is an era of technological breakthroughs, and today’s industry leaders are racing to capitalize on the funding opportunities that any clean tech breakthrough presents.
For starters, low- or zero-carbon industrial products, such as those developed by GH Power, build a direct in-road to state and federal contracts and environmental initiatives. The same is true for products manufactured by industries using these clean methods.
In other words, it makes economic sense.
That’s why the market potential for hydrogen technology is poised to hit $11 trillion by 2050, according to Bank of America.
Over 60% of industrial emissions come from the iron, steel, chemicals, non-metallic minerals, and nonferrous metals industries, according to Forbes.
Steel is manufactured by heating iron ore using dirty coal and coke, and the big challenge industry-wide is to develop new ways to produce steel cleaner and more sustainably, which is exactly what GH Power offers for the Alumina industry – a greener zero-carbon emission product.
It’s not a long shot.
Giant steelmakers such as ArcelorMittal (implementing their XCARB decarbonization program - XCarb™ | ArcelorMittal) and ThyssenKrupp ( implementing their Blue Mint decarbonizing program - #nextgenerationsteel | thyssenkrupp Steel (thyssenkrupp-steel.com) are already working to adopt sustainable technology for sustainable steel production using green hydrogen. And Europe’s largest steel plant is getting up to 2 billion euros to make the shift.
There are incentives all over the place, including the cement industry, which traditionally uses coal to process decomposing limestone. Here, too, one of the world’s biggest cement manufacturers is developing a new process that uses electricity instead of coal, taking things one step further by capturing carbon in the process.
The First 100% Green Hydrogen Production
GH Power came to the forefront in 2022, just as Russia was invading Ukraine, prompting a worldwide push focused on energy security and defending against the weaponization of oil and gas.
It all helped to give much greater impetus to the clean energy transition, both from an energy security and climate change perspective.
Canada was among the first movers here, taking decisive steps by signing a Joint Declaration of Intent with Germany to collaborate on the export of clean Canadian hydrogen to Europe’s economic powerhouse to create a Transatlantic supply chain corridor. Canada is planning to be exporting hydrogen by 2025.
At the center of this supply chain is GH Power, which has received over $2 million in federal funding to help advance this initiative with its participating partners.
GH Power’s hydrogen-producing reactor process is proprietary and breakthrough.
The products produced by the modular version of GH Power’s 2MW reactor are pure and clean, with zero emissions, zero carbon, and zero waste, using only 2 inputs (scrap aluminum and water). Only a small amount of energy is required to start the reactor, after which it is a self-sustaining operation.
The reactor is believed to be the very first of its kind to continuously operate extracting baseload energy and hydrogen from the rapid oxidation of metal in water.
It’s modular and scalable and is planned to enable local microgrids to supply reliable green energy solutions anywhere, anytime--even in the most remote areas of the world.
The reaction is exothermic and self-sustaining, and everything else the energy transition is desperate for - safe, quiet, and deployable in last-mile locations for energy, hydrogen, and alumina buyers.
GH Power could help resolve a major problem in the green hydrogen segment, which traditionally relies on an energy-intensive process of electrolysis. In order to produce just 1 MW equivalent of electricity from hydrogen through electrolysis, you need around 4 MW of solar or wind power, rendering it expensive and inefficient. GH Power’s process is said to create green hydrogen for an estimated 45% cheaper than existing electrolysis technology—and only 1/100th of the land required by solar-powered electrolyzers.
Legitimacy: The Path to Profit for a Green Transition
Without certificate solutions, industries lack the credibility they need to legitimately reduce their carbon footprint. This impacts their ability to raise more funds to pursue full sustainability and a new form of increased green profit-taking for shareholders.
One of the biggest takeaways from last year’s COP28 was the unprecedented multi-billion-dollar Green Public Procurement Pledge for green steel, concrete, and cement, with major Western governments leading the way (U.S., UK, Canada, Germany).
That is poised to be a major catalyst for demand and investment in clean tech solutions, especially those such as GH Power’s whose technology potentially fits our biggest industrial emitters.
North America is in desperate need of these products. Despite mainstream media headlines to the contrary, the United States is not currently a global leader in decarbonization. While American industry is less carbon-intensive than China, India, and Russia—the world’s biggest emitters—it lags behind the European Union, the UK, and Japan.
Other companies to watch in the hydrogen space:
Air Products and Chemicals, Inc. (NYSE:APD) is a big player in the industrial gases scene, now making impressive moves in the hydrogen market. They're not just focused on making hydrogen; they envision a whole ecosystem for sustainable energy. Their extensive background gives them an edge, as not many companies can claim expertise in both the production and distribution of industrial gases. With hydrogen expected to play a key role in future energy scenarios, their well-rounded solutions offer reliability and the ability to scale, which are crucial in the fast-changing energy landscape.
As the global emphasis shifts towards hydrogen, their comprehensive approach to hydrogen technology positions them as an integral part of the hydrogen story. This makes them an attractive narrative for investors looking to get involved in the hydrogen market.
Their move into creating integrated hydrogen systems showcases their adaptability and forward-thinking approach. They're not just about producing hydrogen; they're looking at the bigger picture of a sustainable energy ecosystem. This vision, combined with their competitive edge in both production and distribution, makes investing in Air Products and Chemicals a promising option for those who want to support a company at the forefront of the energy transition.
Linde plc (NYSE:LIN) has a storied past in the industrial gas domain and is now making notable advances in the hydrogen sphere. Their approach covers all bases, from hydrogen production to setting up the necessary infrastructure, showcasing their dedication to pushing hydrogen technology forward. Their global reach gives them a unique advantage, as Linde is involved in various projects around the world, from production to partnerships and research, highlighting their active role in the hydrogen revolution.
For investors, Linde offers a mix of stability and innovation. Their extensive experience, coupled with a proactive stance on hydrogen technology, suggests a path of steady growth and visionary leadership in the industry. Linde represents a well-balanced investment opportunity in a market that values both historical achievements and a commitment to future advancements.
Their holistic strategy in the hydrogen space illustrates their genuine commitment to advancing hydrogen as a key component of the future energy landscape. With activities ranging from production to the development of global infrastructure, Linde's proactive efforts set them apart from competitors. This blend of traditional success and innovative endeavors makes Linde an appealing investment choice for those looking to engage with a leader in the evolving energy sector.
Shell (NYSE:SHEL) is transitioning from a traditional oil giant to a diversified energy company, a move that marks a significant shift in the energy sector. Their involvement in hydrogen initiatives, from establishing refueling stations to engaging in research collaborations, is a key part of this transformation. Shell's strategy showcases a broad and forward-thinking approach, positioning them as a major player in the move towards sustainable and innovative energy solutions.
Shell offers a unique opportunity to back a company that combines the robustness of an established energy leader with the agility and innovativeness of a green technology firm. Their commitment to hydrogen is a critical element of their future strategy, signaling a strategic pivot towards renewable energy sources. This dual advantage of stability and innovation makes Shell an attractive choice for investors navigating the uncertain energy market.
Shell's efforts in the hydrogen space reflect a broader commitment to adapting to and leading in the changing energy landscape. For investors, this means supporting a company that's not just responding to the shift towards renewable energy but is at the forefront of driving this change. The combination of Shell's historical strength and its forward-looking initiatives presents a compelling narrative for those looking to invest in a company that is shaping the future of energy.
BP (NYSE:BP) has rebranded itself from British Petroleum to 'Beyond Petroleum,' symbolizing its transformation into a leader in the green energy revolution, with hydrogen playing a pivotal role. Their involvement in hydrogen, through investments and partnerships, showcases BP's progressive approach to energy. Positioning hydrogen at the heart of their growth strategy aligns with global sustainability goals and indicates their readiness to play a significant role in the future energy landscape.
BP's commitment to hydrogen and sustainable energy solutions signals strong potential for long-term growth, making them an appealing choice for investors focused on future-oriented companies. Their efforts to pivot towards a more sustainable energy mix underscore BP's vision and adaptability, positioning them as a forward-thinking player in the energy sector.
For investors, BP represents a company that's not only embracing the shift towards cleaner energy but is actively shaping the direction of this transition. Their focus on hydrogen and renewable energy solutions offers a glimpse into the future of the energy market, where sustainability and innovation drive growth. Investing in BP means backing a company with a clear vision for its role in a greener, more sustainable energy future.
By Tom Kool
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the governments are funding development of hydrogen technologies; that significant funds are being invested in clean hydrogen producers; that governments are aiming to help develop carbon-free clean hydrogen solutions; that hydrogen power will be utilized as a main driver for decarbonization and as a source of energy for the global economy in the future. replacing fossil fuels and other competing alternative technologies in the future; that GH Power Inc.’s technology will be developed, commercially implemented and achieve widespread market acceptance; that GH Power will complete the development of its hydrogen reactor that will produce hydrogen 60% cheaper than by electrolysis, become a net producer of energy to the supply grid, co-produce alumina which is 85% cheaper than current production methods; that GH Power’s technology will be revolutionary in the decarbonization of the energy sector; that GH Power’s small pilot model will be scalable at the commercial level in the proposed reactor in Hamilton, Ontario, and will achieve the anticipated results of clean, carbon-free energy production and related bi-products; that GH Power can finance ongoing operations and development; that GH Power can achieve its business plans and objectives as anticipated. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition including that governments may fund the development of alternative technologies instead of hydrogen based technologies; that hydrogen technology may fail to gain widespread commercial use and acceptance due to safety, cost or other issues; that alternative technologies may be preferred in the future to hydrogen technologies as the main replacement of fossil fuels and other energy sources; that GH Power Inc.’s technology may fail to be completely or successfully developed and/or commercially implemented; that alternative technologies may gain wider acceptance than or prove to be superior to those of GH Power for various reasons; that alternative technologies may result in greater energy savings and necessary bi-products; that GH Power’s technology may fail to deliver the results anticipated in a commercial setting; that GH Power’s commercial reactor may not be developed as anticipated or at all; that GH Power may be unable to finance its ongoing operations and development; that the business of GH Power may be unsuccessful or otherwise fail for various reasons. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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