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How to Bridge the 190 billion Investment Gap in Hydrogen Infrastructure?

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.

Here are some publications that may interest you

The Green Steel case: A deeper dive into the economics of imports into the EU

The global steel industry is set to grow by 36% by 2050 and contributes to 7% of the global GHG…

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The Green Ammonia case

Ammonia, an important feedstock to our economy as it is the 2nd most produced chemical by mass, after sulphuric acid…

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Norway announces competitive bidding process for the use of ammonia in vessels

Norway, through ENOVA, will provide investment support via a competitive bidding process for projects that will use ammonia as fuel…

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EU Renewable Hydrogen Tear sheets

2023 has been a pivotal year for renewable hydrogen in the EU with the definition of "renewable hydrogen" (RFNBO), adoption…

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Ammonia cracking

With a majority of the major importers located far away from potential production hubs, there arises a question of what…

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Norsk Hydro produces World’s first aluminium using green hydrogen

Kudos to Norsk Hydro and Hydro Havrand for producing world's first aluminium batch using green hydrogen This is a great…

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