Developers embarking on ‘strategy pivots’ are the main reason for low-carbon hydrogen project cancellations, according to new Rystad Energy research.
It found strategic changes accounted for 24% of cancelled projects, representing around 6 million tonnes per annum of hydrogen capacity, as firms return to core businesses and scale down more risky hydrogen investments.
For example, BP and Australia’s Origin Energy have suspended or cancelled multiple projects, citing the need to cut costs and prioritise core areas.
“This retrenchment is understandable given the nascent and complex nature of clean hydrogen – initial targets often outpaced more realistic business and transition models,” the energy research company states.
… to continue reading this article and more, please login, register for free, or consider subscribing to gasworld
You’ve reached your weekly limit to access free articles!
Want to keep reading?
Please register for free and create a profile to gain access to this full article and gasworld’s daily news.
For access to more content including our monthly digital magazines, subscriber-only features or columns and all our other gasworld archives, please consider subscribing.
Alternatively, you can continue reading more articles as a guest on Wednesday, 27th August at 3:29PM
