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Who has invested in Hydrogen and Why are those projects FAILING?





By: Donnavan Kirk

October 21, 2024 12:33pm ET


In 2024, significant investments in hydrogen energy projects have been made by various companies and governments worldwide. For example, Ballard Power Systems has been actively involved in supplying hydrogen fuel cells for transportation, including buses in North America and Europe. The company also supports projects like the world’s first hydrogen-powered ferry and mining trucks​.


Governments have also made major investments in hydrogen. Australia is one of the leaders, with over AU$200 billion in planned investments for hydrogen projects, including regional hydrogen hubs and collaborations with countries like Germany and Japan. The Australian government announced AU$6.7 billion specifically for renewable hydrogen production​.


Additionally, the Hydrogen Council, a global coalition of over 140 companies, has reported a seven-fold increase in committed capital for hydrogen projects, with total investments reaching around USD 75 billion by 2024​. This reflects growing confidence in hydrogen as a key player in the global clean energy transition.


Who invested in America?

Several major investments have been made in hydrogen energy projects in America, particularly under the Biden administration’s "Investing in America" agenda. The U.S. Department of Energy announced $750 million in funding for 52 hydrogen projects across 24 states in 2024, aiming to lower clean hydrogen costs and boost U.S. manufacturing capacity. Key companies involved in this investment include Ballard Power Systems, Cummins Inc., Plug Power, and Robert Bosch LLC, alongside others like Nel Hydrogen and Nuvera Fuel Cells​



Why are these projects being stalled?

Several factors are stalling hydrogen projects, despite their importance for a sustainable energy future.

  1. Lack of infrastructure and demand: One of the biggest challenges is the lack of infrastructure to support hydrogen production and distribution. Additionally, demand for low-carbon and renewable hydrogen remains limited, accounting for less than 1% of global hydrogen production. This combination hinders scaling up efforts​

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  2. High production costs: Current methods for producing green hydrogen (from renewable energy sources) are expensive. While technologies are improving, the high initial costs, compared to cheaper fossil fuel alternatives, make large-scale adoption slow .

  3. Regulatory barriers and standards: Different countries have yet to establish harmonized regulations for hydrogen usage. This regulatory fragmentation complicates cross-border hydrogen trade and the mutual recognition of certifications, which are essential for global scaling​

    IEA

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  4. Slow progress in demonstration projects: While there are demonstration projects across various sectors, including maritime shipping and heavy industry, the pace of deployment is slow. Many projects face issues such as inadequate funding, geographical limitations, and a lack of collaboration between public and private sectors​

    IEA

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These factors combined make it difficult for hydrogen projects to gain the momentum needed to meet 2030 goals.

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