Three key uncertainties to resolve to drive hydrogen scale

Reducing green hydrogen’s production costs, raising electrolyser efficiencies and upping the pace of infrastructure development to drive adoption are three key industry uncertainties that need to be resolved, according to McKinsey’s Technology Trends Outlook 2022 report.

Drastic reductions in production costs, coupled with infrastructure development to enable adoption, are required to scale hydrogen production across a wider set of applications, the report states.

Lower production costs of electrolysers must be paired with higher efficiency to improve hydrogen density, purity and lifetime, while dispatchable electrolysers will allow for the integration of more intermittent renewable energy sources in the system.

Overarching uncertainties include supply chain risks amid global economic uncertainties, as well as insufficient regulatory clarity on decarbonisation commitments, renewable-energy requirements, and uncertain carbon pricing, the report adds.

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