• The BBC reports from Italy on whether hydrogen can be the fuel of the future.
• They use Venice as their example. Venice’s poor air quality has led to a proposed solution of hydrogen-powered boats replacing the diesel engines, which are causing irreparable damage to the city’s monuments. But the law currently prohibits the fuel to be used in boats.
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Summary (You can listen to the podcast by clicking here)
• The BBC reports from Italy on whether hydrogen can be the fuel of the future.
• They use Venice as their example. Venice’s poor air quality has led to a proposed solution of hydrogen-powered boats replacing the diesel engines, which are causing irreparable damage to the city’s monuments. But the law currently prohibits the fuel to be used in boats.
• Is hydrogen the magic molecule that some believe? Views are mixed. Much quicker refuelling compared to batteries leaves clear benefits for long distance transport. But high costs and image problems pose hurdles.
• It’s also not really a green fuel – more like grey, with fossil fuels needed to make hydrogen. One solution is to use renewables to make hydrogen.
• Another problem is the need to change existing designs (like gas-based central heating) to achieve a structural shift in demand for fossil fuels.
• Italy has successfully tested hydrogen in a handful of factories but the scale remains small.
• Is it all too little too late for Venice? The city’s small size is seen as a good test bed for hydrogen and a way to make the city part of the solution to climate concerns, rather than just a symptom.
Why does this matter? Hydrogen-powered cars (from companies such as Toyota) are slowing coming on the market and may, like electric vehicles, start to become more common and affordable. Wider use of electricity and hydrogen-powered (from renewables) transport will help cut pollutants. And given the increased focus on ESG in investment mandates, companies like Toyota, or those promoting hydrogen boats in Venice, may benefit from a reallocation of assets towards greener investment.
Recommended reading: What Type of ESG Investing Makes Money? (Presiyana Karastoyanova, 3 min read)