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MANY PROJECTS DO NOT TAKE OFF DUE TO FEW INVESTMENTS
In recent years, the hydrogen market has seen growing interest as a source of clean and sustainable energy.
However, despite its potential, the sector is facing several challenges that have negatively impacted the stock value of many companies.
The momentum from two years ago in favor of green hydrogen, generated by the U.S. Inflation Reduction Act (IRA), has drastically slowed down due to still high costs and adverse macroeconomic conditions.
Global economic uncertainties, such as financial market volatility and commodity price fluctuations, have had a significant impact on the hydrogen sector.
Companies are facing difficulties in securing the funding and investments needed to expand their operations and develop new technologies.
The adoption of hydrogen technologies is still in its early stages.
The infrastructure required for the production, storage, and distribution of hydrogen is expensive and complex to implement.
Additionally, the technology for electrolyzers, which is crucial for the production of green hydrogen, is still under development and improvement.
This has led to delays and high costs, negatively affecting companies in the sector.
All of this is compromising the 2030 production targets for low-carbon hydrogen, both in the United States and Europe.
Everyone talks about hydrogen, discusses it, supports it, but then no one puts in the real money.
Only 18% of low-carbon or renewable hydrogen projects in North America and only 5% of such projects in Europe aiming to be operational by 2030 have reached FID (Final Investment Decisions), according to a report last month by McKinsey & Company and the Hydrogen Council.
Despite the current challenges, the hydrogen market has significant potential for the future.
With increased investment in research and development and the support of government policies, it is possible that the sector can overcome these difficulties and grow in the coming years.
