According to new research released by the Hydrogen Council, there is more urgency than ever to increase investment in large-scale hydrogen energy projects.
The report, Hydrogen Insights 2022, was created in partnership with the renowned consulting firm McKinsey & Company. It notes that 680 large-scale hydrogen project proposals have been announced, representing a total of US$240 billion in direct investment between now and 2030, an increase of 50% since November 2021 alone.
The next move for businesses, investors, and governments is to fast ramp up final investment decisions (FIDs) in order to jump-start project construction and operations as soon as feasible in light of the significant uptake in hydrogen energy project announcements.
According to Yoshinori Kanehana, co-chair of the Hydrogen Council and chairman of Kawasaki Heavy Industries, Ltd., “With the rising worries about energy security, it is apparent that our economies require hydrogen. To reap the benefits of hydrogen, however, on-the-ground deployment must quicken since it is not happening quickly enough. This paper suggests a number of high-priority initiatives for businesses and regulators to do in order to address the issues and quicken the deployment of substantial amounts of hydrogen.
Additionally, by emphasizing what is really occurring in terms of deployment, funding, and investment as well as providing projections for the future, the study aids in our understanding of the present situation of the global hydrogen economy.
“Climate change is the existential issue of our time, and it will need businesses and governments working together to confront it. We must do more now,” said Tom Linebarger, Executive Chairman and Chairman of the Board of Cummins Inc. and Co-Chair of the Hydrogen Council. Hydrogen will be crucial in helping us transition to a future with no emissions since our clients need a variety of solutions for wildly varied applications all across the world.
According to the analysis, in order to achieve the 2050 net zero carbon emissions objective, investments in hydrogen projects must triple to US$700 billion by 2030, or an extra US$460 billion, in order to fully realize the climatic benefits of hydrogen.
The Council study continues by pointing out that the estimated investment in hydrogen for 2030 is less than 15% of what was put into upstream oil and gas over the previous ten years.
The report makes it abundantly evident that a swift rise in hydrogen project investment and on-the-ground deployment is necessary to achieve the planet’s promise to make a positive influence on climate change.