Potentials of low-emission hydrogen and gaps in implementation
- REDAÇÃO H2RADAR
- Mar 17
- 2 min read
Low-carbon hydrogen has been widely seen as a key enabler for global decarbonization, especially in sectors that are difficult to electrify, such as heavy industry and long-distance transportation. However, despite growing enthusiasm for its implementation, the reality of the sector presents significant challenges. The high cost of production, the risks associated with investment and the lack of infrastructure are some of the main obstacles that hinder the achievement of the established goals.
In recent years, there has been a significant increase in the ambition of green hydrogen projects. Between 2020 and 2023, the pipeline of announced projects tripled, reaching 422 GW of capacity planned for 2030. However, the implementation rate of these initiatives remains low. A study that tracked 190 projects over three years revealed that only 7% of planned installations were completed on schedule in 2023, highlighting a critical gap between intention and execution.
The challenge of financing and the need for effective public policies
The discrepancy between ambition and implementation of low-emission hydrogen is also reflected in the financial challenges. It is estimated that, without a carbon pricing mechanism, the full implementation of the announced projects would require global subsidies in the order of US$1.3 trillion, with a potential range of US$0.8 trillion to US$2.6 trillion . This amount far exceeds the incentives announced to date, signaling the need for more robust public policies and innovative financial mechanisms to make investments viable.
Furthermore, a prolonged shortage of renewable hydrogen is a real risk if implementation challenges are not addressed strategically. Given this scenario, policymakers must target incentives for applications where hydrogen is truly indispensable , while ensuring that investments are allocated efficiently. Only with a structured approach that combines government support, adequate financing and collaboration between the public and private sectors can green hydrogen fulfill its role in the transition to a low-carbon economy.
