Can Hydrogen Deliver? Industry Leaders Weigh in on Costs, Policy, and Progress

(North American Clean Energy) Hydrogen has long been a staple of industrial processes, but its potential as a decarbonisation tool remains the subject of intense debate. While its role in refining, steel production, and heavy transport is increasingly recognised, fundamental challenges persist – chief among them cost, infrastructure, and investment uncertainty.

Speaking at StocExpo 2025, industry leaders and energy transition experts examined hydrogen’s future, addressing both its promise and the obstacles hindering widespread adoption.

Low-carbon hydrogen is widely viewed as a critical enabler of net-zero ambitions, particularly in sectors where direct electrification is impractical. Eugenia Belloni Pocorob, Lead H2 and CC(U)S for the Netherlands at BP, highlighted its importance in reducing refinery emissions. “Decarbonising refinery fuel is essential, and low-carbon hydrogen provides a clear pathway,” she said. However, she acknowledged the formidable hurdles. “The technical and financial challenges remain substantial, but the opportunity for emissions reduction is undeniable.”

The transport sector is also exploring hydrogen’s potential. Amit Rao, principal consultant at S&P Global, noted its long-standing use in industrial applications but pointed to new areas of demand. “We are seeing airline manufacturers investigating pure hydrogen solutions beyond sustainable aviation fuel (SAF). It may seem far-fetched now, but technological advances happen rapidly,” he observed.

Despite its promise, the high cost of carbon capture and storage (CCS) and hydrogen projects remains a significant barrier. “The scale of capital required for CCS projects is enormous,” said Rao. “We have already seen major industry players reconsider their green commitments. The question is: where will the funding come from, and who will drive the transition?”

Investor hesitation is another factor slowing progress. Belloni Pocorob pointed out that traditional investors are reluctant to engage in projects with long payback periods. “The appetite for quick returns does not align with the realities of hydrogen investment. We need a different type of investor – one willing to take a long-term view.”

Government intervention has played a decisive role in advancing early-stage projects. Matt Wilson, Head of New Energy Markets at Navigator Terminals, cited the UK’s approach, where government-backed competition frameworks have helped de-risk investments. “By aligning the entire value chain, these initiatives have made projects more viable,” he explained. “Future developments will build on this foundation.”

The trajectory of hydrogen investment is increasingly being shaped by global political dynamics. Rao warned that shifts in US policy could have far-reaching consequences. “We need to wait out the Trump presidency to gain clarity on the long-term outlook. Over the next four years, we are likely to see renewed trade conflicts – not just with China, but across the board. The US is moving towards decoupling from global markets, which will have profound implications for European industry,” he said.

Rising defence spending in Europe could also reshape energy transition priorities. “If governments allocate 3% or more of GDP to defence, other sectors will inevitably face budgetary constraints,” Rao cautioned.

Despite these challenges, the panel remained cautiously optimistic. Belloni Pocorob noted that while the number of hydrogen projects has declined, awareness and momentum have grown. “We may have gone from 30 projects to fewer than five, but the fact that some are now moving into construction is significant. The energy transition is not just theoretical – we are starting to see real implementation,” she said.

Wilson echoed this sentiment, highlighting progress in the UK. “The projects we have in place are gaining traction. The policy framework is set, and the risk profile has improved. This momentum will carry through to SAF and other hydrogen-linked sectors,” he concluded.

Hydrogen may not yet be the silver bullet for industrial decarbonisation, but its role in the energy transition is becoming clearer. Whether it can fully deliver on its promise will depend on sustained investment, policy support, and the resolution of geopolitical uncertainties. READ MORE

Excerpt from Wood Mackenzie: In 2025, the US will consolidate its position as a blue-focused hydrogen market, driven by policy developments under a second Trump administration. A surge in blue hydrogen investment – with at least three large-scale blue hydrogen projects reaching FID – will see the US emerge as the world's leading blue hydrogen producer. So what about the much-hyped green hydrogen? Has the industry given up on it?

To find out, host Sylvia Leyva Martinez, principal analyst at Wood Mackenzie, is joined by hydrogen analyst Bridget Van Dorsten. Bridget explains why, despite massive project announcements, only a fraction of hydrogen projects have actually moved forward. What are the biggest roadblocks to deployment? Already in 2025 we’re seeing financing hurdles, off-take uncertainty, and the challenges of scaling both green and blue hydrogen. To unpack the financial hurdles, Carl Cho - Director of Clean Energy Finance at Citibank – also joins the show. He breaks down the "hype cycle" surrounding hydrogen and why investors are hesitant to commit to long-term deals.

Plus, Bridget and Carl look at the economics of hydrogen production, the learning curve of building large-scale infrastructure, and whether small, localised projects could be a better approach. They also debate economies of scale vs. economies of production and how hydrogen might fit into the future of energy. Sylvia thinks it could be better suited to a localised role in microgrids, industrial hubs, but what about data center energy demands? READ MORE