Few subjects are as fraught and complex as hydrogen. In the latest 1895 episode, gasworld’s Rob Cockerill and Tom Dee reflect on the main hurdles the sector has faced during the last five years, which have slowed the uptake of mass-market adoption despite tangible progress.
The team chronicled 23 companies that have faced either restructuring, scrapped projects or gone bankrupt, with many of these in the last four to five months. It is clear that financing not only remains an obstacle to projects being green-lit but also to corporate profitability in the sector. Last year was an especially uncomfortable year, “with the hydrogen bubble finally bursting”.
Yet the prevailing narrative of an industry constantly on the ropes isn’t quite right, either. Progress is there to be seen.
Amid stories of major corporates such as BP, Air Products and Airbus scaling back projects, there are also positive developments. Just this week we saw news of the TotalEnergies and RWE green hydrogen offtake – and while that particular deal doesn’t start until 2030, it illustrates hydrogen’s now-growing role in tackling industrial decarbonisation.
The podcast reflected on the difficulties, given it’s been more doom than boom overall, including a look at the different cycles of over-exuberance and undue negativity that have been on show in hydrogen.
Cockerill charted the “great momentum” behind climate change after Covid-19 when it felt hydrogen was gaining traction, but then the Russia-Ukraine conflict impacted energy prices and market dynamics.
Leanne Halliday, Global Head of Energy and Renewables at LRQA, said it has seen a slowdown in electrolyser development at the end of last year which has carried over into this year. “I wouldn’t necessarily say it’s a stop, but it’s definitely a foot off the accelerator. It’s a stall but the market’s still there. We are seeing a lot of political upheaval and people are pushing back investment.”
The podcast also reflects on the many insightful webinars and podcasts that have tracked hydrogen’s opportunities.
Video: The potential for hydrogen production in the Middle East is so enormous
Video: The potential of medical oxygen from hydrogen
Innovation, legislation and leadership factors also need to be addressed. Further consolidation and business closures are likely in the short to medium term, according to experts, as the industry charts a pathway to success.
Click here to hear the Where did it go wrong for hydrogen? episode
