Green Hydrogen's Promise Faces High Costs and Infrastructural Hurdles

Green hydrogen developers worldwide are pulling back on projects and trimming investments, casting doubt on a quick transition from fossil fuels. The anticipated demand from industries like steelmaking is overshadowed by cost concerns, revealing ambitious initial plans as untenable.

The reality in Europe underscores the industry's adjustments. Jun Sasamura, from Westwood Global Energy, states that only a fifth of hydrogen projects will likely materialize by decade's end, against an ambitious EU target.

High costs and insufficient demand have rendered many plans unprofitable. Subsidies exist, but demand lags. Projects face delays as companies reassess viability and explore other energy alternatives.

(With inputs from agencies.)