Over the next three decades, from 2025 to 2050, investments in green hydrogen could total between 6 and 12 billion USD globally.
BCG and EDHECinfra, a business that analyses and computes indexes across 25 nations, representing an investing universe of 7,000 companies. The demand for green hydrogen is predicted to increase to over 350 million tonnes annually by 2050.
Thus, according to the study conducted in collaboration by the two organisations, green hydrogen is positioned as an appealing investment opportunity in the infrastructure and energy sectors, and 67% of investors even plan to increase their investment in renewable energies in the next three to five years.
The largest grey hydrogen, produced from natural gas and pollutants, the global demand for hydrogen in 2021 was 94 million tonnes. Nonetheless, it is predicted that demand for green hydrogen will increase by up to 350 million tonnes annually, expanding rapidly.
According to BCG, between 2025 and 2050, the public and private sectors will need to spend between $6 and $12 billion in assets to produce and transport green hydrogen in order to meet global decarbonization ambitions.
Start by learning about subsidies and investing only in nations, like Portugal, where policymakers have established financial systems that limit the risks associated with investing in hydrogen. Then, transfer the technical implementation risks associated with investing in low-carbon projects to knowledgeable partners. Finally, build a portfolio by investing in a variety of hydrogen-related projects and fostering synergies.
Investing in infrastructure (which includes energy), the fastest-growing alternative asset class, has proven to be resilient in the face of the negative economic effects produced by the pandemic, inflation, and conflict, according to the consultant’s analysis.
This form of investment produced a 7.36% annual return between December 31, 2019, and December 31, 2022, even showing a profit in 2022. In the areas of energy and the environment, transportation and logistics, digital infrastructure, and social infrastructure, infrastructure investors presently control assets totaling $1.1 trillion.