‘Sustainable’ gas taxonomy will affect hydrogen
Medium-to-long-term outlook for clean hydrogen remains strong despite short-term disruption from gas market interplay
The EU’s recently proposed new green finance taxonomy, which classifies gas and nuclear power as sustainable, will increase investment in both technologies and could influence the way the hydrogen market develops, according to experts. The move aims to increase private sector investment in gas and nuclear to replace capacity lost by the closure of coal plants. The private sector has been reluctant to invest in new gas capacity in Europe for fear of creating stranded assets, according to James West, senior managing director at investment bank and advisory group Evercore. “Companies were not willing to invest because of the uncertain outlook,” he says. “The EU considering, and hopefully puttin
Also in this section
1 May 2024
High costs and uncertainty over offtake agreements are delaying project investment decisions, according to Aurora Energy Research
1 May 2024
Low clearing prices in first European Hydrogen Bank auction reflect fierce competition for green hydrogen subsidies and buyers’ willingness to pay premium
1 May 2024
Japanese company launches test module at Takasago Hydrogen Park with aim to deploy megawatt-scale demonstration project of electrolyser technology
24 April 2024
Demand for energy purposes to outpace feedstock applications by the 2040s as government policies drive consumption, says DNV