Interchange Recharged Is the world giving up on green hydrogen? | Hydrogen energy is having an identity crisis but who’s to blame?
Mar 11, 2025
Bridget Van Dorsten, a principal analyst at Wood Mackenzie specializing in hydrogen market trends, and Carl Cho, director of Clean Energy Finance at Citibank with over a decade of clean energy experience, dive into the identity crisis facing hydrogen energy. They discuss the U.S. transition toward blue hydrogen and the lag in green hydrogen project advancements. Roadblocks like financing, offtake uncertainty, and scaling challenges are explored. The duo also debates localized projects versus large-scale infrastructure, pondering hydrogen's future role in energy.
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Hydrogen Hype Cycle
- Despite massive hydrogen project announcements, only a small fraction have progressed.
- The industry is experiencing a natural hype cycle, with negative news emerging after initial excitement.
Hydrogen Production vs. Demand
- The clean hydrogen industry focuses heavily on production cost reduction, sometimes neglecting demand-side considerations.
- Building large-scale infrastructure presents a significant learning curve and potential for cost overruns, similar to nuclear power plants.
Building Big is Hard
- Constructing large-scale hydrogen plants is complex, even with established technologies like SMR and electrolysis.
- Cost overruns can be substantial, posing binary risks for newer technologies like hydrogen.