Lack of visible demand hampering hydrogen projects
Uncertainty over offtakers is the main barrier to securing finance for hydrogen projects, says report by Hydrogen Council and McKinsey
A lack of visible demand for hydrogen is the key barrier faced by developers seeking investments to advance projects to FID, according to Hydrogen Insights 2022, a report published by industry group the Hydrogen Council and consultancy McKinsey. Of more than 680 projects announced, 45 worth $29bn are in the Feed phase and 120 worth $80bn are undergoing feasibility studies, according to the report. However, only $22bn worth—or about 10pc of proposals—have reached FID or are under construction or in operation. This number has risen by only $2bn in the last half of the year, which is significantly slower than growth in project announcements. “On-the-ground deployment is not moving fast en
Also in this section
21 March 2025
European Hydrogen Bank auction is four times oversubscribed, while industry remains on pause in US amid IRA subsidy uncertainty
21 March 2025
The country is engaging with potential investors from North America and China as it refines its auction process to reflect shifting dynamics in green hydrogen, Hydrom’s managing director tells Hydrogen Economist
13 March 2025
Government awards €1.21b of funding to seven large-scale projects as it chases capacity target of 12GW by 2030
12 March 2025
Speakers at this year’s CERAWeek conference noted the growing interest in green hydrogen, but hurdles such as cost remain to its adoption at scale
