World - Green and Blue Hydrogen Investments to Jump in 2021
Hydrogen production is expected to see a significant hike in investment in 2021, as more hydrogen projects get the green light.
Market intelligence provider Fitch Solutions noted that increasingly stringent emissions laws have driven plans to develop commercial-scale hydrogen production capacity. Overall, Fitch Solutions expect to see a clear increase in the number of blue and green hydrogen projects in its key projects database over 2021.
Electrolyser projects to boost green hydrogen
Green hydrogen is produced through the process of electrolysis using renewable power sources such as solar or wind, with net-zero carbon emissions. In past years, the vast amount of electricity required to produce hydrogen through electrolysis has made it prohibitively expensive, making up roughly 75 per cent of total production costs.
As a result, Fitch highlights the downward trend in renewables costs as a key tenet of the hydrogen industry’s projected growth, strengthening the business case for investment in electrolyser facilities.
The robust growth of non-hydropower renewables and the announcement of plans to ban carbon-based automotive fuels in major metropolitan areas in Western Europe over recent years has also increased the scope for green hydrogen production in these regions.