UK Hydrogen Strategy & Policies 2021
Platinum Long-Term Demand Moves Ever Higher
As we have laid out to our client base and prospective investors on many occasions, the perfect investment storm into platinum is nothing short of spectacular.
The global move into the de-carbonisation of energy production and heavy pollution controls is changing the landscape very quickly indeed, and with these new technologies that have already been developed are going to make significant demand impacts on particular commodities, the one particular metal we are mainly focused upon is platinum, from an enormous investment opportunity.
Platinum is now supplanting palladium in the catalytic converters used for pollution control, platinum is partially substituting palladium because of the price differential and also the shortages of palladium supply, alongside this greater weightings of these metals are being demanded by the increase in new and very stringent pollution controls that have been enacted globally.
Note : Palladium is more reactive than the other platinum metals. For example, it is attacked more readily by acids than any of the other platinum metals. The role of platinum in catalytic converters is to oxidise carbon monoxide (CO) and hydrocarbons.
Catalytic fabricators alone expect platinum demand to increase from c.150,000oz this year to c1,500,000 moz in 2025 (a tenfold increase).
Hydrogen fuel cell and green technology segment will drive platinum demand significantly higher.
The advent of fuel cell technology has changed the landscape dramatically. There are now two types of proton exchange membrane (PEM) hydrogen fuel cells, which will ultimately increase platinum demand...
- The first application surrounds the PEM fuel cell drive-trains of electric vehicles (EVs), particularly the drivetrains of heavy-duty vehicles – all of which meet the zero-emissions standard.
- The second type of hydrogen fuel cells are called PEM electrolysers, which are used in the production of green hydrogen from solar, wind and hydropower.
Which flows naturally into the fact global government investment programs and subsidies alongside major industrial manufacturing giants encompassing car companies, ship builders, energy suppliers and energy storage facilities are pushing very hard from Japan, South Korea, China, Europe, UK and the USA into green Hydrogen production and in turn Hydrogen Fuel cells for vehicles.
Manufacturers are to be guaranteed a price for their hydrogen by the UK Government so they do not have to sell to consumers at a loss
Manufacturers are in line to be guaranteed a price for their hydrogen by the Government so they do not have to sell to consumers at a loss, under plans unveiled in consultation papers on Tuesday.
The subsidy is expected to be funded through either higher bills or with money from the public purse.
The Government’s strategy published today says that hydrogen could meet 20-35pc of the UK’s energy demand by 2050, compared to the negligible amount currently close to zero precent, and it wants the UK to be producing 5GW by 2030.
Note : CCUS - Carbon Capture, Utilisation and Storage, is an important emissions reduction technology that can be applied across the energy system.
Officials claim this could create more than 9,000 UK jobs and unlock £4bn investment by 2030, potentially rising to 100,000 jobs by 2050.
The Government says that about 45TWh of UK buildings’ heating might be supplied by hydrogen in 2035. Currently, about 434TWh of energy is used each year to heat UK homes.
Major energy companies such as BP, Shell and Scottish Power are all planning investment in hydrogen, and projects could get the go-ahead under the right investment conditions.
In the UK Hydrogen Strategy - August 2021
The role of hydrogen in meeting net zero
Analysis by BEIS suggests 250-460TWh of hydrogen could be needed in 2050, making up 20-35 per cent of UK final energy consumption. The size of the hydrogen economy in 2050 will depend on a number of factors – including the cost and availability of hydrogen and hydrogen-using technology relative to alternatives, such as electrification, biomass and use of CCUS. Nonetheless, there is consensus, from the Climate Change Committee (CCC) and others, that we will need significant amounts of low carbon (green) hydrogen on the system by 2050.
CLICK HERE to download the NEW UK Hydrogen Strategy report in full.
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