Is hydrogen a sustainable asset class?
Hydrogen is likely to be marginal in sustainable impact portfolios compared with electrification and renewables
Exposure to hydrogen remains marginal in the portfolios of sustainable impact investors, with emissions intensity across the value chain a key factor when considering its credentials as a green investment. While hydrogen produced from electrolysis using renewable or nuclear power has a much lower emissions intensity than grey hydrogen, for many applications—including light-duty transport, power generation and heating—direct use of renewables via electrification can often be regarded as more sustainable. “There are fewer energy losses, fewer risks of gas leakage and explosions as well as less exposure to risks of water stress compared to hydrogen—at least for wind and solar power,” Elchin Mam
Also in this section
17 May 2024
Company’s Positive Motion strategy to be at forefront of the EU’s green hydrogen, e-fuel derivatives and biofuels drive to decarbonise and solve energy trilemma
15 May 2024
Huge turnout for Rotterdam trade show masks worrying lack of progress for nascent industry confronting the harsh realities of transition
8 May 2024
Commission modelling of emission reduction pathway implies undershoot of current hydrogen production and imports targets, according to speakers at a recent Hydrogen Europe event
8 May 2024
Hydrogen cars may not have much credibility, but the same could have been said about EVs not too long ago