Hydrogen

Investment Outlook

Policy-Dependent

Market Size

Early Stage

What It Is

Hydrogen can be burned or used in fuel cells to produce energy with water as the only direct emission. Its climate value depends entirely on how it is produced — from fossil fuels, from fossil fuels with carbon capture, or from renewable electricity splitting water.

It is most compelling where direct electrification is difficult: heavy industry, shipping, and long-duration energy storage.

Where Capital Is Going

Electrolyser manufacturing and cost reduction
Industrial decarbonisation projects, particularly steel and chemicals
Storage and transport infrastructure
Fuel cells for heavy transport and shipping
Production hubs co-located with renewable generation

Key Applications

Steel and chemical production
Heavy freight, shipping, and aviation fuels
Long-duration grid storage
Industrial process heat
Fertiliser and ammonia production

Challenges

Production cost remains high relative to incumbent fuels
Storage and transport are technically difficult given hydrogen's properties
Infrastructure is largely absent and expensive to build
Round-trip energy efficiency is lower than direct electrification
Economics depend heavily on policy support that can change

Major Companies

Who's building in this space.

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