Both the public and business sectors now prioritise investing in hydrogen when considering sustainable energy projects.
The European Commission approved €5.2bn in public funding for hydrogen projects, with significant private sector investment expected. Hydrogen infrastructure initiatives are popular throughout Europe, suggesting a promising future for sustainable green energy.
Hydrogen has been crucial to many industrial operations, including power generation and renewable energy storage. Its adaptability allows it to address many of the world’s pressing energy issues. Its potential has made infrastructural improvements a priority. With rising governmental investment and private equity interest, the hydrogen sector is poised to explode into the global energy landscape.
A year ago, French investment firm Ardian and Swiss firm FiveT Hydrogen launched Hy24, the world’s largest and most ambitious clean hydrogen infrastructure investment platform. Faster now. The fund raised €2bn for clean energy projects, exceeding its €1.5bn goal. This current round of financing should help hydrogen become a clean fuel in Europe and beyond.
TotalEnergies, Baker Hughes, and Axa support the fund. Airbus, Snam, Air Liquide, Itochu, Lotte Chemical, Société Générale, BBVA, and the Japan Bank for International Cooperation have invested recently.
The crisis in Ukraine and the EU’s desire to lessen its dependence on Russian gas have accelerated the trend towards hydrogen. The REPowerEU plan calls for 20 million tonnes of hydrogen by 2030, half of which would be produced in the EU. Hy24 has ambitious 10-year goals in the EU and beyond. The investment will cover the full value chain, benefiting regions without vital infrastructure.
Hydrogen investment has increased in 2022 because to its high value creation, growth, and sustainable energy potential. Andera Partners, a private equity firm with an infrastructure firm, invested in Lhyfe, a French green hydrogen producer, to launch and grow the company and accelerate green hydrogen deployment across Europe.
With an unpredictable fossil fuel energy market, decarbonized energy projects provide optimism. Venture capital immediately joins. Many corporations are betting on H2 following the 2010s commercialization of solar and wind energy. Deloitte reported significant investments in 2021 and 2022. The various parties involved in a technology that may be used to multiple areas, creating value and jobs, also explains this.
The Hydrogen Innovation – Future Infrastructure & Vessel Evaluation and Demonstration (HI-FIVED) consortium, led by vessel provider ACUA Ocean and infrastructure provider Unitrove, received a £3.8 million UK government grant to develop its autonomous vessel and bunkering infrastructure technologies for liquid hydrogen.
Japan also leads in hydrogen infrastructure and supply chain development. The Japanese Ministry of Economy, Trade, and Industry (METI) requested 300 billion JPY for hydrogen import and supply chain development, including transport and liquefaction technologies, including 26 billion JPY for hydrogen co-fired gas turbine technology demonstration.
These discoveries have convinced PE players that hydrogen is essential to the energy revolution. The hydrogen infrastructure ecosystem is ready for business and public investment at a key time.
