Navigating the Slow Growth of Green Hydrogen Projects
Key Ideas
- Green hydrogen projects face challenges in securing buyers for supply, impacting final investment decisions.
- Industry experts at Wood Mackenzie's Hydrogen Conference 2024 discuss the need to accelerate project timelines and remain hopeful.
- Key players emphasize the importance of government engagement, commercial models, and viable projects with long-term growth potential.
- Despite realistic expectations and a slow start, the green hydrogen market is gradually gaining momentum with over 200 projects producing hydrogen.
The article discusses the slow but steady progress of green hydrogen projects, focusing on the challenges faced in securing buyers for supply, which influences the final investment decisions. At the Wood Mackenzie's Hydrogen Conference 2024, industry experts highlighted the need to expedite project timelines and maintain a positive outlook on the market. Key figures from Société Générale, Mitsubishi UFJ, and HydrogenOne Capital shared insights on the current state of the hydrogen market. They emphasized the importance of government collaboration, exploring commercial models, and ensuring the viability of projects with long-term growth potential. Despite initial hype and subsequent realistic expectations, the industry is showing positive momentum, with over 200 green projects already operational and producing hydrogen. The experts stress the necessity of assessing project feasibility, controlling costs, establishing long-term offtake contracts, and evaluating growth opportunities and infrastructure. While acknowledging that the market will require time and patience to fully take off, they express confidence in the sector's future prospects. Overall, the sentiment in the article is positive, highlighting the potential for growth and success in the green hydrogen market.