Global Green Hydrogen Projects Face Setbacks Amid High Costs and Weak Demand
Global green hydrogen projects are facing significant challenges, leading to cancellations and delays. High production costs, weak market demand, and reliance on subsidies have made many ventures unfeasible. Major companies across Europe, Australia, and the U.S. are scaling back plans or abandoning projects due to these economic pressures.
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Green hydrogen development is taking a significant hit worldwide as increasing production costs and tepid demand render numerous projects unviable. This economic pressure has prompted businesses to cancel or postpone their ventures.
In Europe, energy company LEAG and steelmaker ArcelorMittal have abandoned their green initiatives due to cost concerns despite substantial public subsidies. Similarly, Spain's Repsol and BP have reduced their targets, citing financial constraints and subsidy dependency concerns.
The U.S., Australia, and Asia are experiencing similar struggles, with companies like Hy Stor Energy and Kawasaki Heavy Industries shelving plans due to adverse regulatory and cost environments. The future of green hydrogen investments remains uncertain under current market conditions.
(With inputs from agencies.)
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