Make Hydrogen Happen

Consultant Capgemini asked more than 120 hydrogen businesses for their views, presenting their responses in a new whitepaper, alongside its own analysis

 

A new whitepaper from consultant Capgemini, entitled Reducing low-carbon hydrogen investment and operating costs, does not pull its punches when explaining how the French company feels about the current state of the clean hydrogen industry.

 

“Low-carbon hydrogen remains too expensive and uncompetitive compared with hydrogen produced from other sources,” it spells out on its opening page.

The “widespread hype and enthusiasm” seen since 2021 in the clean hydrogen sector “has faded with market and regulatory uncertainties, with very few projects making it to the investment stage”, the report adds.

“It is this stark disparity between expectations and tangible results that led us to dig deeper and commission this report.”

Why are costs so high?

Capgemini identifies several reasons for the high costs, namely: “Difficulties in obtaining supplies of competitive low-carbon electricity, rising interest rates, and difficulties in finding partners — particularly EPC [engineering, procurement and construction] partners.”

The report then explains that the Paris-based company decided to carry out a survey of “nearly 120 companies from the hydrogen sector all over the world” in an attempt to gauge industry opinions on how the high costs could be reduced.

High electricity prices were identified as the biggest problem, with 58% of respondents saying this was a “major difficulty”.

[Read more at Hydrogen Insight website]