In its recent report, H2Global Foundation addressed the challenges faced by securing investment for hydrogen infrastructure.
Hydrogen infrastructure includes midstream facilities related to transportation (e.g., pipelines), conversion and reconversion (e.g., ammonia synthesis plants and crackers), and storage of hydrogen from production sites to end-use location.
The demand for hydrogen infrastructure depends on producers signing capacity booking agreements to transport green molecules to customers. However, this depends on producers securing binding offtake agreements with end users and having a clear need for infrastructure. Additionally, it assumes that the required hydrogen infrastructure is available when needed.
Such interdependence showcases the complexities within the emerging hydrogen market. Addressing these challenges requires targeted measures, such as designing financial support mechanisms to reduce market risks and encourage investment in hydrogen infrastructure.
