Green hydrogen hype fades as high costs force project retreat

illuminem summarizes for you the essential news of the day. Read the full piece on Japan Times or enjoy below:

🗞️ Driving the news: Some of the largest developers in the green hydrogen sector are pulling back due to high costs
• Projects have been canceled or scaled back, with Origin Energy recently halting its hydrogen plans in Australia reflecting a broader industry slowdown

🔭 The context: Green hydrogen, once seen as a key to decarbonizing sectors like steel, shipping, and chemicals, is expensive and difficult to scale
• The market is developing slower than expected, with companies like Nel ASA also facing project cancellations in the U.S.

🌍 Why it matters for the planet: Hydrogen is crucial for reducing carbon emissions in hard-to-decarbonize industries, but economic barriers threaten its adoption
• A slowdown could delay global climate goals tied to green energy transitions

⏭️ What's next: Experts suggest this industry reset could be beneficial by refocusing efforts on feasible projects
• Hydrogen demand is expected to grow, but large-scale adoption may take longer than previously hoped

💬 One quote: "The more realism there is, the better, because we can focus time, capital and talent on things that will work rather than on things that won’t work.” – Michael Liebreich, CEO of Liebreich Associates

📈 One stat: Clean hydrogen production is expected to grow 40% in 2024 but will still only meet 1% of global hydrogen demand, according to the International Energy Agency

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