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1 . Investment in technology to drive the hydrogen transition
As part of the accelerated global shift to clean energy , hydrogen will play a vital role in the energy transition as one of the most viable pathways to carbon neutrality by 2050 . Although most countries are working towards developing a hydrogen economy , it is not feasible to produce sufficient hydrogen to meet expected demand given limitations on renewable energy power in many regions , including Europe . This means that hydrogen will need to be transported over long distances . Given that hydrogen needs to be cooled down to -252 degrees Celsius , transportation results is a huge loss of scarce green energy and the cooled hydrogen has a very low energy density . Accordingly , ammonia and methanol , as the most effective carriers of hydrogen , are the keys to the hydrogen economy . Representing more than 50 percent of grey hydrogen use today , ammonia and methanol can decarbonize approximately 90 percent of today ’ s GHG emissions across agriculture , fuel , feedstock , and indirect markets in power and waste . OCI Global is at the forefront of this shift , with multiple low-carbon and green ammonia and methanol projects in development . An example of this in action is our small-scale green ammonia plant in Egypt which we recently commissioned with pioneering technology , and our blue ammonia project in Texas , which will be the first greenfield blue ammonia facility of this scale to come on stream in the United States .
However , widescale adoption in the manufacturing sector faces some challenges , including the need for infrastructure development and the cost of production . The lack of offtake at scale to support these projects is another challenge . The policy and regulatory landscape that has not yet caught up with the demand needs to make low-carbon projects viable and adequately support innovation around alternative fuels .
2 . Government regulation and financial support
One of the biggest drivers towards an accelerated move to carbon neutrality today remains regulation and financial support from governments . While high natural gas prices might encourage people to think more about alternatives , the reality is that it takes long-term planning and investment to bring these projects online and businesses that want to make the move are doing it anyway .
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