Project

Green Hydrogen Producers

Project

Green Hydrogen Producers

A Nascent Market With Huge Potential for Growth
Hydrogen is one of the least polluting energy sources as, when combined with oxygen in a fuel cell to generate electricity, only water vapour and a little heat are released. Green hydrogen, so called because it is created via clean electricity-powered electrolysis (basically, splitting water into hydrogen and oxygen molecules), is the most environmentally friendly option because no GHGs are emitted during production. The only drawback is that electrolysis is highly energy-intensive, which drives up production costs and makes green hydrogen too expensive for most energy consumers.

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Despite these challenges, the IEA is optimistic about green hydrogen’s future as a clean energy source as prices of renewables are steadily falling, meaning production costs will eventually decline to the point green hydrogen becomes affordable for all. The hydrogen transition also poses exciting business opportunities for SAPG, which, as a producer of competitively priced clean electricity, is well-positioned to negotiate PPAs with green hydrogen producers to power their electrolysis plants. Securing such projects will be one of the Company’s top objectives once it increases production capacity.

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