State of Hydrogen Supply and Demand Explored
Inflation Reduction Act in the US and the REPowerEU plan in the European Union will play a strong role in facilitating the transition to low-carbon hydrogen
A new report from Guidehouse Insights explores the state of hydrogen supply and demand and how policymakers are reacting to changes in the hydrogen industry.
Low-carbon hydrogen production technology has improved in the past decade, moving from precommercial or low volume phases to commercial viability at a significant scale. Traditional large hydrogen industry players have invested in numerous projects worldwide, with several already completed and many more still in the development pipeline. According to a new report from Guidehouse Insights, despite this enthusiastic rollout, considerable uncertainty remains related to price competition with existing grey hydrogen and the potential to expand to non-traditional demand sectors such as transportation, industrial heating, and power generation.
“Policy support can help reduce cost barriers, facilitate infrastructure development, and accelerate the development and commercialization of critical enabling technologies,” says Richard Shandross, associate principal with Guidehouse Insights. “As such, policies like the Inflation Reduction Act in the US and the REPowerEU plan in the European Union will play a strong role in facilitating the transition to low-carbon hydrogen.”
Guidehouse Insights recommends those entering the industry should adopt a sound risk management strategy—e.g., diversifying portfolio investments and extensively researching viable markets before dedicating capital. Additionally, market participants should continue monitoring hydrogen policy discussions and developments in their regions of interest, according to the report.
The report, Navigating Uncertainties in the Clean Hydrogen Trade, covers the current state of hydrogen supply and demand; how policymakers are reacting to changes in the hydrogen industry; and additional related topics, including analogous commodities that can serve as indicators of the future of low-carbon hydrogen, barriers to trade development, and financing options. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Navigating Uncertainties in the Clean Hydrogen Trade, summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.