Infrastructure hurdles hold back hydrogen FIDs – Worley
The need to de-risk supply chains, lack of a tradeable price and the problem of common infrastructure all contribute to lack of FIDs in the hydrogen sector, engineering firm tells Hydrogen Economist
The hydrogen project pipeline may be booming, but FIDs are relatively few and far between. Three main challenges are holding projects back, says Hans Dieter Hermes, vice-president for hydrogen at engineering firm Worley, which has advised on more than 250 hydrogen developments. The first major challenge is building up and de-risking the supply chain. “A green hydrogen project will need its own pipelines, its own port access and its own transmission lines—not to mention all the wind and solar capacity. A 1GW [green hydrogen] project requires a significant amount of raw material, so there is a logistic challenge,” Hermes tells Hydrogen Economist, noting that a project of that size would need 6
Also in this section
22 March 2024
German energy firm and Canada-based Pattern Energy aim to ship green ammonia to Hamburg in latest move to secure imports to Europe’s largest economy
22 March 2024
French company prepares for commercial launch of underground storage system to be deployed at green hydrogen production and consumption sites
21 March 2024
Region has competitive edge in low-carbon hydrogen, but infrastructure and export challenges are key roadblocks to overcome
18 March 2024
Major Indian companies are venturing into the sector thanks to government support, but cost and incentive questions persist