Pressure builds on green hydrogen in pursuit of decarbonization
COP27 placed green hydrogen production at the top of the global net-zero agenda. Banks want to fund this technology, but energy supply, cost and regulatory uncertainty are jeopardizing its future as the decarbonization solution for hard-to-abate sectors.
Green hydrogen is having a moment. From electrolyser manufacturing plants in Germany to green ammonia projects mushrooming under the Arabian sun, this is – as many bankers that Euromoney speaks to are keen to point out – a dynamic space.
It is also a sector that needs to be built from scratch, with a long value chain and diverse financing needs.
Typically seen as a neat solution for hard-to-abate industries, green hydrogen, or GH2, has possible applications across many different sectors.
“It is estimated that hydrogen could create as much as $11 trillion in investment opportunities over the next three decades,” Bank of America notes in a recent report.