Commodities and Futures News

Hydrogen project investments are accelerating but uncertainty remains, IEA says

2024.10.02 01:33

By Forrest Crellin

PARIS (Reuters) – Final investment decisions for hydrogen projects have doubled over the last 12 months, dominated by China, but installed capacity and demand are low as the industry faces uncertainty, the International Energy Agency (IEA) said in a report on Wednesday.

The investment decisions represent a five-fold increase of current low-emission hydrogen production by 2030, with China covering more than 40% over the last 12 months, which would eclipse solar expansion at its fastest rates, the group said.

Demand targets, however, are only just over a quarter of the production projects, and progress made so far in the hydrogen sector is not sufficient to meet climate goals, the IEA added.

Most projects are also at early stages, the IEA said, and the project pipeline is at risk due to unclear demand signals, financing hurdles, incentive delays, regulatory uncertainties, licensing and permitting issues and operational challenges.

“Policymakers and developers must look carefully at the tools for supporting demand creation while also reducing costs and ensuring clear regulations are in place that will support further investment in the sector,” said IEA Executive Director Fatih Birol.

Global hydrogen demand could grow by around 3 million tonnes (Mt) in 2024, concentrated in the refining and chemical sector, but that should be seen as a result of wider economic trends rather than the result of successful policies, the IEA said.

© Reuters. FILE PHOTO: Hydrogen trailers are seen at a hydrogen refuelling station during an organised media tour to a hydrogen energy demonstration zone in Daxing district of Beijing, China May 31, 2023. REUTERS/Florence Lo

Demand is currently largely covered by hydrogen produced by unabated fossil fuels, with low emissions hydrogen still only playing only a marginal role, it added.

Technology and production cost pressures remain a large factor, with electrolysers in particular slipping due to higher prices and tight supply chains, while cost reduction relies on technological development and achieving economies of scale.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 74,813.04 9.03%
ethereum
Ethereum (ETH) $ 2,599.12 7.05%
tether
Tether (USDT) $ 1.00 0.12%
solana
Solana (SOL) $ 185.65 15.76%
bnb
BNB (BNB) $ 581.58 4.18%
usd-coin
USDC (USDC) $ 1.00 0.24%
dogecoin
Dogecoin (DOGE) $ 0.207589 25.36%
xrp
XRP (XRP) $ 0.534151 5.18%
staked-ether
Lido Staked Ether (STETH) $ 2,592.42 6.90%
tron
TRON (TRX) $ 0.16235 0.15%
cardano
Cardano (ADA) $ 0.36081 9.27%
the-open-network
Toncoin (TON) $ 4.79 4.17%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 10.18%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,061.66 6.79%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 74,546.97 8.90%
avalanche-2
Avalanche (AVAX) $ 26.29 13.77%
weth
WETH (WETH) $ 2,597.60 7.10%
bitcoin-cash
Bitcoin Cash (BCH) $ 377.91 12.87%
chainlink
Chainlink (LINK) $ 11.77 12.32%
sui
Sui (SUI) $ 2.32 20.69%
polkadot
Polkadot (DOT) $ 4.07 6.62%
leo-token
LEO Token (LEO) $ 6.12 0.88%
usds
USDS (USDS) $ 0.985026 1.54%
uniswap
Uniswap (UNI) $ 8.94 29.61%
litecoin
Litecoin (LTC) $ 69.89 4.56%
near
NEAR Protocol (NEAR) $ 4.18 14.02%
aptos
Aptos (APT) $ 9.25 13.08%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,732.42 6.98%
pepe
Pepe (PEPE) $ 0.000009 15.96%
internet-computer
Internet Computer (ICP) $ 7.96 11.55%
bittensor
Bittensor (TAO) $ 509.97 19.59%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.38 20.59%
dai
Dai (DAI) $ 1.00 0.10%
kaspa
Kaspa (KAS) $ 0.119249 13.26%
monero
Monero (XMR) $ 158.88 0.68%
stellar
Stellar (XLM) $ 0.096682 5.75%
ethereum-classic
Ethereum Classic (ETC) $ 19.19 7.24%
ethena-usde
Ethena USDe (USDE) $ 0.999652 0.04%
whitebit
WhiteBIT Coin (WBT) $ 19.42 2.57%
blockstack
Stacks (STX) $ 1.68 12.05%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.321716 8.11%
dogwifcoin
dogwifhat (WIF) $ 2.46 20.76%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.23%
okb
OKB (OKB) $ 38.88 4.20%
aave
Aave (AAVE) $ 153.78 17.32%
crypto-com-chain
Cronos (CRO) $ 0.081707 14.29%
filecoin
Filecoin (FIL) $ 3.63 8.59%
arbitrum
Arbitrum (ARB) $ 0.523644 8.81%
mantle
Mantle (MNT) $ 0.582472 4.90%
immutable-x
Immutable (IMX) $ 1.17 8.91%