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