“Demand is our next big test”: Hydrogen council Chief flags $110bn at stake without policy progress
With $110bn committed and 500+ projects advancing, the next big test for hydrogen is demand, as global markets push for real offtake and scalable clean energy investment.
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00:00We all know Rome wasn't built in a day, we all know it takes time, but the hydrogen industry is certainly progressing, it's moving forward, and it's showing that it has that staying power.
00:21Hello and a very warm welcome to another episode of Energy Frontiers, brought to you from our studio in Baku.
00:27This month, we look at the hype surrounding hydrogen, at a time when the supply side is scaling, but demand remains a significant bottleneck.
00:37The CEO of the Hydrogen Council will share her view on whether global projects are likely to be delivered or delayed in the years ahead.
00:44But first, here's an overview of the coalition's latest findings.
00:47The hydrogen industry has passed a major milestone, with $110 billion of committed investment globally in more than 500 low-carbon hydrogen projects.
00:59That's according to the first Global Hydrogen Compass report, which points to the sector's challenges having shifted from ambition to execution.
01:10Amongst the biggest constraints to market growth, policy implementation and demand creation.
01:17And despite the industry maturing, around 50 early-stage projects have been cancelled in the past 18 months.
01:24Ninety-seven percent of industry leaders surveyed by the Council maintain hydrogen is a critical decarbonization solution.
01:33But they also warn that cost competitiveness and infrastructure gaps remain significant challenges,
01:40as hydrogen enters its next phase of build-out.
01:45Ivana, it's great to see you. Thank you so much for joining me from Hamburg today.
01:49Thank you so much, Rebecca. Great to be here. Great to join Energy Frontiers.
01:54Let me start by asking you about hydrogen, because it was long hailed as the fuel of the future.
02:00But some analysts are now saying that the hype is over.
02:04So is it dead or is it simply maturing and growing up?
02:07Thank you for starting us with such a provocative question, Rebecca.
02:12Really appreciate it.
02:14And look, the growing up is a good way to think about what's happening in hydrogen right now.
02:20Just like solar, wind or batteries before, hydrogen is navigating the same cycle of excitement, announcements,
02:28but then ultimately moving to a much more disciplined era of maturation.
02:33You know that at the Hydrogen Council, we are tracking every single publicly announced project out there.
02:40And the number is still an incredibly clear story.
02:43We're really seeing that shift from ambition to delivery.
02:48As we know, Azerbaijan overlaps well strategically with the Hydrogen Council's ambitions,
02:53not least when it comes to advancing cross-border trade routes, but also certification standards across the board.
02:59So can you give me a regional perspective and also a global one when it comes to pipeline projects right now?
03:05So let me start with some of the most striking numbers from our recent report.
03:11110 billion in committed capital, over 510 projects past FID, so final investment decision in construction, in operation.
03:23So that is a real shift.
03:25And what I'm most excited about personally is not just these great numbers.
03:30It's really the trajectory behind them.
03:32So if we look at the progress over the last five years, we are seeing 50% year-on-year growth.
03:38And the difference between 2020 and where we are today is we have 10 times more in committed capital.
03:46That's really significant.
03:49And that's where seeing all the regions, you know, really come through on project delivery.
03:54China is dominating both in terms of overall committed capital, but also in terms of renewable hydrogen production.
04:03Second place is North America, leading on low carbon hydrogen production, thanks to longstanding experience and infrastructure for molecules.
04:14Third, Europe.
04:16Things have been a little slow, to be honest.
04:18Although Europe has all the ingredients to be extremely successful as a number one demand center in the world.
04:28As you know, hydrogen is at its best when it connects, when it connects countries, regions with abundant resources.
04:37You mentioned Azerbaijan.
04:38So we're really excited about these developments and seeing that countries are leaning in their strengths, which is extremely encouraging.
04:46Plenty to be encouraged by.
04:48Absolutely.
04:49But also conversely, plenty of projects have been stalled or delayed.
04:53And of course, the next big test will be demand.
04:56So my question is really, when will policy commitments and pilot projects really turn into truly bankable offtake at scale?
05:04Look, demand really is our next big test.
05:08And you mentioned Baku, Azerbaijan.
05:11We were very proud to represent the industry at COP29 last year, where we supported the hydrogen declaration.
05:20And it was really all about how we activate demand.
05:23And I'm glad to report that we've achieved some progress in just the last 12 months, whether it's Japan moving forward with its contracts for different schemes, whether it's Korea organizing some of the first auctions for hydrogen and derivatives, whether it's Europe coming forward with the clean industrial deal and the promise of more practical, pragmatic policymaking and rulemaking for hydrogen.
05:52However, it really boils down to the follow through.
05:57We know that if we can fully implement and enforce four key pieces of legislation, that is the Renewable Energy Directive in Europe, the contracts for different schemes in Japan and Korea, and the tax credit schemes in the US,
06:13we can unlock 8 million tonnes per year of business cases of clean hydrogen demand business cases across those four markets.
06:25And that would be a real moment of lift.
06:27So we have our work cut out for us and really moving very decisively in that direction.
06:33Great to have you on the ground here in Baku for COP29, Ivana.
06:37My question is, how well are we positioned as nations as we head into COP30 in Brazil?
06:42Are we going to deliver on the promises that were made already?
06:45It's really about accelerating action and moving from those, you know, big announcements, target setting to delivery, to building, to building projects.
06:57And I'm glad to report that both on the business side, as well as the policy side.
07:02This is now fully recognized.
07:04And we are heading into COP30 with our focus exactly on those areas.
07:10How do we put in place the right demand signals, the right incentives?
07:15How do we make sure that we can create what some refer to as lead markets?
07:21So the end users where we can really move forward in the near term and make sure that the commercials, that the business works.
07:32Well, important to have those commercials.
07:34Absolutely.
07:35Ivana, we have to leave it there.
07:36But thank you again for your time with Euronews today.
07:39Always a pleasure.
07:40Thank you, Rebecca.
07:41Well, that's a wrap of this episode of Energy Frontiers, brought to you from our studio in Baku, Azerbaijan.
07:47Thanks for watching and head to euronews.com for more.
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