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
27 January 2025
Regional state-owned firms are transforming their strategies and leveraging their resources to position themselves as clean energy powerhouses, and to ensure they maintain influence in a low-carbon world
27 January 2025
Asian neighbours seek resolution on territorial dispute for hydrocarbons development that has spanned decades
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks