2023 is poised to witness a remarkable surge in the hydrogen investment market.
That’s one of the findings of a new report by consultancy LCP Delta, which predicts a staggering 800% increase in the total installed capacity of hydrogen energy projects this year in Europe.
Analysts say this would be the first time the total capacity will surpass the 1GW mark.
Experts suggest the UK and Germany hold 400MW of hydrogen projects in the pipeline each – both countries are set to play a crucial role in achieving a milestone for the hydrogen market in Europe.
The planned projects could see the total installed capacity of hydrogen projects across Europe surge from approximately 236MW in 2022 to more than 2GW in 2023.
However, the report also highlights the growing global competition in the hydrogen market, with Europe at risk of falling behind its rivals due to regulatory hurdles impeding the final investment decision.
This bottleneck could potentially leave Europe lagging in the race for hydrogen energy dominance, according to the report.
Brendan Murphy, Head of Hydrogen at LCP Delta, said: “Our research indicates that discussion is turning into tangible action and with increased investor confidence, we believe the sector will continue to develop rapidly.
“We expect to see hydrogen play an increasingly significant role in the global energy market and our daily lives in the next five to ten years.”