Capital Caution Breeds Investment Restraint

Current spending trends indicate that companies are nearing their peak annual expenditure, warranting attention to capital spending directives. The gas sector is maintaining its capital expenditure budgets while evaluating the potential returns from hydrogen investments amid rising costs in the market. Year-over-year spending in hydrogen is showing a slight decline, raising concerns about the viability of returns on green and blue hydrogen projects. Firms stress the importance of demand commitments before proceeding with investments, suggesting that the rapid growth seen in the gas sector over recent years is likely to slow down. Additionally, the battery market, notably lithium chemicals, faces significant challenges due to decreasing prices, prompting substantial cutbacks in spending.