Belgium – According to a new analysis by the Hydrogen Council, there has never been a more pressing need to increase funding for large-scale hydrogen energy projects in industry.
Hydrogen Insights 2022, produced in partnership with the international consulting firm McKinsey & Company, details the progress made since November 2021 on 680 proposals for large-scale hydrogen projects, which are expected to receive direct investment of US$240 billion between now and 2030.
Since there has been a significant uptick in the announcement of hydrogen energy projects, the next step for industry, investors, and governments is to rapidly increase FIDs in order to rapidly initiate project construction and operations.
Hydrogen investment is a must
The paper argues that if we are to realize the full climatic potential of hydrogen and achieve the net zero carbon emissions goal by 2050, we would need to triple the investment in hydrogen projects by 2030, reaching US$700 billion. According to the Council’s research, the amount invested in hydrogen by 2030 is less than 15% of the total amount spent on upstream oil and gas over the past decade.
The report makes it obvious that a significant rise in hydrogen project investment and on-the-ground deployment is necessary to satisfy the world’s commitment to positively impact climate change.
To quickly get from project proposals to FIDs, public and private sectors must work together. For the years 2022 and 2023, Hydrogen Insights 2022 lays forth a series of priorities that will benefit both policymakers and businesses.