Green hydrogen sector is facing disruption as companies around the world are cancelling projects and trimming investments, according to media reports.
Reuters references data by research company Westwood Global Energy, which estimates that only about a fifth of planned hydrogen projects across the European Union are likely to come online by the end of the decade. That equates to roughly 12 GW of production capacity against an EU target of 40 GW.
As companies find transition to the low-carbon hydrogen fuel prohibitively expensive, the EU 2030 hydrogen production target is at risk. Companies had scrapped or delayed more than a fifth of all European projects by the end of last year, Westwood Global Energy said.
Green hydrogen production still remains more expensive than traditional fossil fuels. It could take 10 - 15 years for production costs to fall 30% - 40% to make the alternative fuel competitive in a global landscape, analysts noted.
Some European countries have scaled back their ambitions: Italy has changed its €600 million renewable fuels investment from hydrogen to biomethane, France lowered its 2030 hydrogen electrolysis capacity target by more than 30%, and Portugal has cut its electrolysis capacity guidance by 45%.
Theodor Lisovoy, Managing Editor, Rough&Polished
