1 March 2022: European efforts to reduce reliance on Russian gas will accelerate hydrogen use and platinum demand: We estimate that the European Commission’s plans to replace 25-50 billion m3 of Russian gas with green hydrogen could result in incremental platinum demand of ~240 koz p.a. by 2030. Whilst the motivation is mostly strategic, we note that green hydrogen is also cost competitive at current, albeit inflated, natural gas prices. It would also boost the development of Europe’s hydrogen production capacity and accelerate the commercial adoption of fuel cell electric vehicles (FCEV), bringing forward their associated significant platinum demand, similar in size to global demand from catalytic converters today.
Platinum Perspectives
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