Renewable gas tariff model, a potential solution for hydrogen’s clean energy future, invites challenge and implication.
Climate Change/Environmental Economics
The Trump administration’s interest in expanding tariffs to natural gas has triggered renewed interest in natural gas liquefaction and its subsequent production of low-carbon hydrogen.
However, the displacement and increased costs of the eventual tariff measures could add to the hydrogen economy’s developmental risks while presenting an opportunity for H2-based renewable natural gas (RNG) tariff models.
Retaliating against tariff measures initiated during the US-China trade war, Chinese authorities imposed retaliatory tariffs on imported US liquefied natural gas (LNG) in June 2018. With the onset of transatlantic trade tensions and the threat of new duties on energy, attention has returned to the economic potential of an North American-based liquefied natural gas (LNG) industry in the United States.
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The inherent challenge presented by this renewed economic interest in natural gas renewifieries is how they can be affordable in a market period dominated by national initiatives focused on subsidizing renewable energy.
According to President Donald Trump’s instructions, officials from the Commerce Department are considering a tariff on natural gas, which is a particularly expensive and astronomically impractical measure.
The point of imposing tariffs on natural gas imports replaces the lower cost bottom line with ecologically questionable coal or oil imports, or subsidies for natural gas retailers.
It is also possible that Trump may be expressing his interest in expanding America’s natural gas industry, the lion’s share being further developed with a view to producing new forms of clean hydrogen.
Trump’s affinity for low-cost natural gas, in turn, may have a substantial bearing on the potential for lower-cost sources of reinvention H2 hydrogen. A cheaper renewable H2 model could represent an alternate source for producing low-cost hydrogen with the advantage of a greater carbon footprint fiscal responsibility in the secondary tariff model.
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Climate Change/Environmental Economics
Tag: Renewable gas tariff model, Liquefied natural gas (LNG) industry, Hydrogen economy, Natural gas tariffs, Tariff measures, Retaliatory tariffs, Subsidies for natural gas retailers, Lower-cost renewable H2 model.
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