Today an article on IL SOLE 24 ORE capture the situation about the so called ‘Green Hydrogen Dream’ The energy transition holds immense potential, but the journey to decarbonization is far from straightforward. A striking example is the challenge of scaling up green hydrogen production. While hailed as a key solution for carbon neutrality, green hydrogen faces a fundamental barrier: cost. Recent reports highlight that costs remain prohibitively high and demand is insufficient, leading to delayed or canceled projects globally. Despite innovations and political momentum, only 12% of proposed green hydrogen plants have secured long-term purchase agreements. The technological and financial risks involved make investors wary. Moreover, studies from Harvard suggest that current cost projections for green hydrogen production are unsustainable for mass adoption. Without substantial cost reductions, green hydrogen may not achieve its full potential in decarbonization efforts by 2030. As companies and governments push forward, it’s critical to address these challenges head-on. Key Takeaways: • Green hydrogen technology must lower production costs to be viable. • The current lack of market demand and regulatory uncertainty is slowing progress. • Investments in the supply chain and distribution network are crucial to unlocking green hydrogen’s potential. As we work towards a carbon-free future, cost management will be the key to turning green hydrogen from an ambitious vision into a feasible reality, until that moment we will be ‘energy dependent’ on very unstable Regions. #Sustainability #GreenHydrogen #EnergyTransition #Decarbonization #CleanEnergy #Innovation #globalwarming
Exactly - since all takeaways are interconnected, government incentives must target the weakest domino to start the chain reaction and ensure it is sustainable. 🐔& 🥚- what is more critical, supply or demand? Throwing money at supply is not the solution, imo
Sustainability Commercial Manager - developing strategies to maximize monetization through the sale of sustainable packaging and advisory services on the evolving ESG landscape
5moAnd yet governments are not scared to invest in weaponry, and tycoons pour huge amounts of cash into space travel. The short-sightedness of modern-day investors is appalling, and will very soon backlash.