Navigating Project FIDs: A Look at the Refining Sector's Recent Advances in Hydrogen Technologies
Key Ideas
- Only 15% of green and blue hydrogen projects since 2015 have reached FID, posing challenges for industry growth.
- Despite bottlenecks, the refining sector shows promising momentum in adopting green and blue hydrogen technologies.
- McKinsey highlights the need to build value chains for technology deployment as a key challenge in reaching FID for hydrogen projects.
Recent breakthroughs in the refining sector have highlighted the significance of hydrogen technologies amidst challenges with project FIDs. As the global conference circuit for hydrogen restarts, the focus remains on the industry's struggle to achieve project Final Investment Decisions (FIDs). McKinsey & Company reports that only about 15% of green and blue hydrogen projects announced since 2015 have successfully reached FID, with some estimates suggesting an even lower figure. The refining sector, however, is showing genuine momentum in transitioning towards green and blue hydrogen. Despite facing bottlenecks like the need to develop entire value chains for technology deployment, hydrogen projects are making strides. McKinsey's latest assessment emphasizes the importance of overcoming these challenges to unlock the full potential of hydrogen technologies in the refining sector.