Investors are cautious when it comes to hydrogen
Is hydrogen a sustainable asset class?
Hydrogen is likely to be marginal in sustainable impact portfolios compared with electrification and renewables
Exposure to hydrogen remains marginal in the portfolios of sustainable impact investors, with emissions intensity across the value chain a key factor when considering its credentials as a green investment. While hydrogen produced from electrolysis using renewable or nuclear power has a much lower emissions intensity than grey hydrogen, for many applications—including light-duty transport, power generation and heating—direct use of renewables via electrification can often be regarded as more sustainable. “There are fewer energy losses, fewer risks of gas leakage and explosions as well as less exposure to risks of water stress compared to hydrogen—at least for wind and solar power,” Elchin Mam
Also in this section
17 January 2025
Bank’s UK arm signs first deal to finance a green hydrogen developer, but cost and offtake pressures mean the sector remains too risky for many lenders
15 January 2025
The country’s technology-neutral position and competitive business environment mean it is looking to be surfing the second wave of the energy transition while others are still grappling with the first
14 January 2025
With abundant wind and sunshine, Africa is poised to lead in green hydrogen production. Yet high costs and financing challenges require global partnerships to unlock the continent's potential
14 January 2025
The continent’s largest economy sees an opportunity to join the global export market, but funding gap and lack of regulatory framework present challenges
