Assessing the opportunity for hydrogen production and logistics

in the United States

SITUATION: The client, a large U.S.-based distributor of petroleum products wanted to evaluate a potential acquisition target in the hydrogen production and logistics business in the US. As part of the due diligence process they wanted to understand the potential for hydrogen in U.S. markets and its relative competitiveness as a transportation fuel for heavy trucks and forklifts in the U.S.
OUR APPROACH: We provided an outlook of hydrogen supply and logistics by production pathway (SMR, gasification, electrolysis, and bio-hydrogen) as well as an overview of the competitive and regulatory landscape. An in-depth economic analysis was conducted to better assess the competitiveness of hydrogen fuel as a means of transportation for heavy trucks and forklifts vs. substitutes (e.g. diesel, battery, biofuels, etc.).

IMPACT:

The results of the study allowed the client to assess the Target opportunity and understand the market potential as it formulated its medium-to-long-term strategy in a low-carbon world
The client ended up acquiring the target company and enter the hydrogen production space

We provided the client with a detailed analysis of the competitiveness of hydrogen in the U.S. heavy-vehicle market