Navigating Uncertainties in the Clean Hydrogen Trade

Low carbon hydrogen production technology has improved in the past decade, moving from precommercial or low volume phases to commercial viability at a significant scale. Traditional large hydrogen industry players have invested in numerous projects worldwide, with several already completed and many more still in the development pipeline.

Despite this enthusiastic rollout, considerable uncertainty remains related to price competition with existing grey hydrogen and the potential to expand to non-traditional demand sectors such as transportation, industrial heating, and power generation. Policy support can help reduce cost barriers, facilitate infrastructure development, and accelerate the development and commercialization of critical enabling technologies. As such, policies like the Inflation Reduction Act in the US and the REPowerEU plan in the European Union will play a strong role in facilitating the transition to low carbon hydrogen.

This Guidehouse Insights Strategy Insight report covers the current state of hydrogen supply and demand; how policymakers are reacting to changes in the hydrogen industry; and additional related topics, including analogous commodities that can serve as indicators of the future of low carbon hydrogen, barriers to trade development, and financing options.