Surging gas prices drive $73bn spend on green hydrogen

Germany, Morocco and the US make biggest investment pledges as green hydrogen costs undercut blue and grey in most regions in wake of war in Ukraine, says Carbon Tracker

The world economy has committed about $73bn of private and public funds to green hydrogen production in response to a surge in natural gas prices sparked by the war in Ukraine, according to NGO Carbon Tracker. Twenty-five countries, mostly in the Global North, have committed funds—with Germany, Morocco and the US pledging the most. The acceleration in investment has been driven by a 70pc+ rise in gas prices since the start of the war in February. This has caused the levelised cost of blue and grey hydrogen to “skyrocket”, making green hydrogen relatively cheaper in most regional markets on a levelised cost of energy basis, Carbon Tracker says. “The price of green hydrogen has steadily