The hydrogen industry reports $75 billion in investment
The global hydrogen industry has reported over $75 billion in invested capital. Despite this, the climate goals are threatened by delays in important projects, writes the Hydrogen Council in its latest report Hydrogen Insight 2024. Roughly 45 percent of the planned projects risk delays, which creates uncertainty about the industry’s future.
Project delays
The delays are largely due to a lack of infrastructure and bureaucratic obstacles. This affects both production and distribution of hydrogen. To meet demand and avoid more delays, better cooperation between governments and industry is needed.
The Hydrogen Council also emphasizes the importance of faster decisions and simpler rules to enable a smooth transition to a greener economy. If these obstacles are not overcome, we risk missing hydrogen’s potential in the transition to clean energy.
Increased willingness to invest and growing markets
Despite the challenges, there is growing optimism within the industry. Several large companies have made long-term investments in hydrogen to reduce their carbon dioxide emissions. The increased willingness to invest indicates that hydrogen plays a central role in the future energy mix.
The market for hydrogen continues to grow globally. Countries such as Japan, Germany and the United States have put forward ambitious plans for hydrogen expansion, and companies in various sectors see the opportunities. The need to diversify energy sources increases the pressure for rapid development.
Risk of not achieving climate goals
Funding is a key issue in overcoming the obstacles. The industry sees an increased need for innovative financing solutions and government investments. Without this, the large hydrogen projects may find it difficult to implement on time.
However, the slow pace risks making the transition to clean energy more difficult. The climate goals for 2050 depend on the industry being able to deliver on its promises. If the current delays are not addressed, the goals of limiting global warming may be in jeopardy.
In conclusion, the hydrogen industry faces both enormous opportunities and significant challenges. The next few years will be decisive for whether hydrogen can become the key player that many hope for in the fight against climate change.
Read more about Klimatklivet’s support of SEK 224 million to build 12 new stations in Sweden.
