Is the green hydrogen dream over?

illuminem summarises for you the essential news of the day. Read the full piece on Deutsche Welle or enjoy below:

🗞️ Driving the news: A major German-Australian green hydrogen deal between Fortescue and E.On has collapsed just three years after it was announced, reflecting a broader downturn in the global green hydrogen sector
• E.On has deprioritized hydrogen investments, while BP recently cancelled its $36 billion green hydrogen project in Australia
• Only 17% of the EU's hydrogen projects are expected to materialize by 2030, underscoring a growing gap between ambition and reality

🔭 The context: Green hydrogen—produced using renewable electricity—is widely seen as a solution for decarbonizing hard-to-abate sectors like steel, fertilizer, and heavy transport
• However, its rollout has depended on significant government support, costly infrastructure, and cheap renewable electricity, all of which remain insufficient
• Early strategic deals, such as Fortescue’s 2022 agreement with E.On, were emblematic of this ambition but are now faltering due to economic and logistical constraints

🌍 Why it matters for the planet: The struggle to scale green hydrogen threatens decarbonization pathways for emissions-intensive sectors lacking viable alternatives
• Its high cost and reliance on renewable energy make deployment difficult without substantial policy backing and infrastructure investment
• As other technologies—such as direct electrification or e-fuels—gain momentum, green hydrogen’s future may be limited to select industrial niches

⏭️ What's next: Industry players like Fortescue are refocusing on smaller, more targeted applications such as green iron and ammonia production
• Policymakers in the EU and beyond may need to reassess subsidy schemes and regulatory frameworks to support more realistic, phased hydrogen strategies
• The hydrogen economy is not over—but its role is shifting from global panacea to strategic complement

💬 One quote: "The role of hydrogen is not going to be the 'everything, everywhere, all at once' fuel." — Alison Reeve, Energy & Climate Change Program Director, Grattan Institute

📈 One stat: Only 17% of the EU’s planned green hydrogen projects are likely to be operational by 2030, according to Westwood Global Energy

See on illuminem's Data Hub™ the sustainability performance of Fortescue, BP, E.On and its peers TotalEnergies, and Shell

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