Hydrogen project risks challenge investors
Flow of money into emerging industry faces bottlenecks as investors grapple with uncertainty over regulation and bankability
Concerns over bankability, regulation and project deployment risks are holding back some investors from the hydrogen sector despite its long-term growth potential as a key plank of the energy transition, according to participants in a Transition Economist roundtable on alternative fuels, held in association with PwC. Corporate and institutional investors are treading carefully as they weigh up risks relating to evolving regulation, the need for bankable long-term offtake deals and the possibility that hydrogen production assets could become stranded because of a lack of midstream distribution infrastructure. “Is there a role for government to play the offtaker of last resort?” Anderson
Also in this section
28 March 2024
Investment landscape is firming up in North African country with potential to become one of the world’s major exporters
22 March 2024
German energy firm and Canada-based Pattern Energy aim to ship green ammonia to Hamburg in latest move to secure imports to Europe’s largest economy
22 March 2024
French company prepares for commercial launch of underground storage system to be deployed at green hydrogen production and consumption sites
21 March 2024
Region has competitive edge in low-carbon hydrogen, but infrastructure and export challenges are key roadblocks to overcome