BP recently announced it is shelving 18 early-stage hydrogen projects—following Shell’s substantial cuts to its hydrogen business late last year. These shifts underscore the continuing economic challenges facing the hydrogen sector, particularly against the backdrop of declining hydrocarbon prices.
The economics tell the story: the cost of green hydrogen production (LCOH) still far exceeds the $1/kg target, hovering instead around $8-$10/kg for high-purity applications like semiconductor manufacturing. Adding storage, transport, and delivery expenses to the mix makes large-scale green hydrogen solutions even less competitive with natural gas.
Yet, there’s still a strong case for green hydrogen as part of the future energy mix. Beyond decarbonisation, it offers strategic security benefits, and a variety of hydrogen technologies—each suited to specific applications—are progressing toward commercial readiness. If geopolitical tensions ease and with election cycles winding down, we could see investor interest pick up in 2025 as the most promising hydrogen projects push toward FID and beyond.
Collaboration will be key. That’s why I’m excited to join fellow industry leaders at the Monaco Hydrogen Alliance on December 2-3, where we’ll discuss scaling renewable hydrogen and addressing the challenges ahead.
If you’re attending, let’s connect—I’d love to hear your thoughts on building the hydrogen economy of tomorrow!
