Lack of visible demand hampering hydrogen projects
Uncertainty over offtakers is the main barrier to securing finance for hydrogen projects, says report by Hydrogen Council and McKinsey
A lack of visible demand for hydrogen is the key barrier faced by developers seeking investments to advance projects to FID, according to Hydrogen Insights 2022, a report published by industry group the Hydrogen Council and consultancy McKinsey. Of more than 680 projects announced, 45 worth $29bn are in the Feed phase and 120 worth $80bn are undergoing feasibility studies, according to the report. However, only $22bn worth—or about 10pc of proposals—have reached FID or are under construction or in operation. This number has risen by only $2bn in the last half of the year, which is significantly slower than growth in project announcements. “On-the-ground deployment is not moving fast en
Also in this section
12 March 2025
Speakers at this year’s CERAWeek conference noted the growing interest in green hydrogen, but hurdles such as cost remain to its adoption at scale
11 March 2025
A reassessment of clean hydrogen’s growth trajectory is underway, but the energy vector’s long-term potential to decarbonise remains intact
10 March 2025
Collaboration has become crucial to success as projects turn out to be more complex and expensive than previously thought, industry figures tell Dubai conference
8 March 2025
Honouring the trailblazing women shaping the future of hydrogen
