At the 2023 ADI Forum, Uday Turaga, CEO, ADI Analytics, discussed the impact of the Inflation Reduction Act (IRA) on the energy landscape. Even with aggressive energy transition scenarios, oil and gas would remain a material part of the energy mix by 2050. This would range from 20% in a net-zero scenario to 33% in a rapid transition scenario. This was a decrease from ~60%. The Inflation Reduction Act (IRA), while supportive of clean energy technologies, was not expected to fundamentally alter this long-term outlook. The IRA offered significant tax credits for renewable power (production and investment tax credits), electric vehicles, and carbon capture (including direct air capture). Crucially, the IRA would have a significant impact on green hydrogen. It was making green hydrogen highly competitive with blue and even gray hydrogen. With projected electrolyzer cost declines, green hydrogen could be significantly cheaper than gray hydrogen by 2025. Moreover, small-scale green hydrogen production was already displacing some of the small-scale liquefaction market.
About ADI Analytics
ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
Subscribe to our newsletter or contact us to learn more.
