An updated “Hydrogen Insights” report has suggested that the hydrogen investment pipeline has grown to $500bn in response to government commitments to deep decarbonisation.
The report, published today (July 15) by the Hydrogen Council in collaboration with McKinsey & Company has revealed that investments in ‘mature’ hydrogen projects have doubled since last February.
The report suggests that globally 131 large-scale projects have been announced since February 2021 taking the total amount to 359 with the estimated total investment in these projects and the whole value chain being an estimated $500bn through 2030.
$150bn, or 30% of the investment, has been in projects considered ‘mature’ meaning that the investment is either in a planning stage, has passed a final investment decision, or is associated with a project that is already under construction, commissioned, or currently operational.
With the total investment, low-carbon hydrogen production capacity will exceed 10 million tonnes per year by 2030, an increase of over 60% on the previous February reported project level.
From this, 70% of the production capacity will come from renewable energy sources, while the other 30% is low-carbon hydrogen generated by fossil fuels and carbon capture storage (CCS).
Th report also outlines how 90 countries, representing 80% of the world’s GDP, have now committed to net zero targets with a further 30 more having concrete hydrogen strategies.
Europe continues to remain at the centre of hydrogen development, accounting for more than 50% of announced projects and an estimated investment of around $130bn.
Despite this, all other regions grew faster proportionally with an increase of over 75%.
China is emerging as a hydrogen powerhouse with 53 large-scale projects having been publicly announced in the nation and investments worth $17bn can be considered mature.
The Chinese Government has made $20bn of public funding available to hydrogen projects with 50% of China’s announced projects being linked to transport applications.
Daryl Wilson, Executive Director of the Hydrogen Council, said, “We’re seeing unprecedented commitment to tackle climate change, from the US to Europe to Asia.
“Governments and industry around the world are coming together around the need to scale up clean technologies fast and hydrogen’s critical role as the catalyst for our clean energy transition has been solidified.
“Large-scale clean hydrogen projects, amounting to about a third of total hydrogen demand growth expected in the next decade, are materialising in response to the many calls for bold action to address climate change.
“We can use hydrogen to turn clean energy goals and promises into clean energy reality.”
H2 View’s Birthday Offer
To thank you, our online readers from the past two years – all 1.4 million of you, we’re offering a special discount on a full 12-month subscription package, available for a limited time only. From today (July 12) to Sunday July 18, subscribe to H2 View and get 50% off, costing you £150/€165/$205 instead of £300/€330/$410.
Click here for more information.