August 24, 2020 Read More →

Supply for green hydrogen won’t be nearly enough to meet demand

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The ballooning number of global green hydrogen projects won’t produce nearly enough to meet early global demand for the fuel that’s seen as key to the energy transition, warned a new study.

Despite 50 new projects being announced in the last year alone, the Institute for Energy Economics and Financial Analysis (IEEFA) reckons green hydrogen supplies will hit 3 million tonnes annually by 2030, well short of a projected demand of 8.7 million tonnes.

The IEEFA’s analysis said many of the projects announced may struggle to proceed on time due to due to “uncertain financing, cumbersome joint venture structures, and unfavourable seaborne trade economics”.

IEEFA report author Yong Por said: “Governments need to urgently back this industry by developing policy settings encouraging private industry to invest the much needed capital, given the industry must ‘learn by doing.

“Until then, we are likely to see project delays as proponents struggle with still absent project viability, evidenced by only 14 of the 50 new projects having started construction with 34 at a study or memorandum of understanding stage.” 

[Andrew Lee]

More: World faces green hydrogen drought despite project boom, warns study

Posted in: IEEFA In the News

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