Funding, weak demand hobble global green-hydrogen projects, BMI report says

There were 663 low-carbon hydrogen projects in the pipeline at the end of 2024, versus 409 a year earlier, BMI, a unit of Fitch Solutions, said in a report on Friday. Some 335 of them were located in North America and western Europe, with the bulk of them targeting green hydrogen.

However, 79 per cent of these projects remained in the planning phase, highlighting the challenges of securing financing and making final investment decisions.

“The hydrogen value chain, from production to export, faces high capital costs, with financing institutions wary of these expenses and uncertain returns, especially amid high interest rates and lack of transport and distribution infrastructure,” the firm said.

Prairie Horizon Hydrogen, a TC Energy and Marathon Petroleum joint venture in North Dakota, was cancelled even with a US$2 billion of federal funding, according to BMI.