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
14 May 2025
Defining moment for US hydrogen sector as House Republicans seek termination of green tax credits
13 May 2025
Existing specifications have been a good starting point for standardisation of hydrogen quality, but they need rethinking—a 99.5 mol-% specification is a promising candidate
12 May 2025
The sector needs a standard covering hydrogen quality for the entire value chain, but no single hydrogen quality covers the needs of all stakeholders
9 May 2025
Hydrogen quality is an increasingly important area for the sector. Though well-established standards are in place, they typically cover only certain parts of assets and value chain
