Letter on hydrogen: Market correction

A reassessment of clean hydrogen’s growth trajectory is underway, but the energy vector’s long-term potential to decarbonise remains intact

First came the hype. Then the reality check. Now, the clean hydrogen sector has entered its first full-blown correction, with some developers aggressively scaling back capacity targets and, in some cases, cancelling projects altogether. French utility Engie is one of the few to go public with its reduced ambition, pushing back a 4GW green hydrogen target to 2035 from 2030. Elsewhere, UK-based BP has shelved its large HyGreen project in northern England, which had been expected to hit 500MW by 2030.  The move came amid a broader strategy shift from the oil and gas major that has seen it scale back investment across the transition business. Talk of reduced near-term capacity targets and cost o