Outlook 2024: Crunch time for hydrogen

The nascent low-carbon hydrogen sector needs 2024 to be a breakthrough year if it is to get within striking distance of the production targets set by policymakers

Hydrogen policymakers around the world are pinning their hopes for 2024 on a sharp rise in the number of proposed production projects reaching FID, as 2030 supply targets start to look increasingly challenging. Only about 4% of announced projects have so far entered construction or hit FID as lenders and investors hold back because of uncertainty around long-term demand, production costs, availability of state subsidies and the lack of a transportation and storage infrastructure. This reluctance to finance projects has left a “funding gap” of about $380b through 2030, according to some estimates. Much faster progress is needed in 2024 to mature hundreds of proposals into bankable projects an