Hydrogen: the opportunity for developers and utilities
With hydrogen set to play a key role in the energy transition, project developers, utilities and IPPs need to act now to reap the rewards
A critical element of the energy transition
Aside from its potential to provide energy storage and grid flexibility, hydrogen’s ability to decarbonise hard-to-abate sectors make it an important means of diversification and alternative revenue stream for project developers, utilities and independent power producers (IPPs).
Bolstered by increasing policy support, we see the potential for significant cost reductions as technology develops and scales. As a result, we expect hydrogen to meet at least 4% of global energy demand by 2050.
We expect hydrogen to meet at least 4% of global energy demand by 2050.
The challenge
Demand for low-carbon energy will dominate the coming decades, making net zero a US$63 trillion investment opportunity for new technologies like hydrogen. Electrification is playing a key role in shifting the fuel mix, creating staggering growth in renewable project investment. But in hard-to-electrify sectors, alternatives must be found. At the same time, the intermittency of wind and solar power creates a need for large-scale storage solutions that can balance fluctuations and ensure grids can flex to meet demand.
Hydrogen is a key part of the answer, but to make the right decisions, developers, utilities and IPPs need visibility of the full hydrogen value chain and access to accurate, granular data that answers key questions. What are the drivers behind profitability for projects? What combinations of technologies can achieve against required financial and performance metrics? What level of capex is required to maximise efficiency and minimise losses?
The opportunity
We stand on the cusp of a new demand era for energy, with sustainable solutions set to be the main beneficiaries. In this environment, hydrogen offers a clear and growing opportunity for developers and utilities.
In a dynamic and rapidly moving market, it’s vital to act now. Generous investment incentives and a bullish market for power prices create strong tailwinds for hydrogen, but to make the right decisions you need access to in-depth data and analysis covering not just the hydrogen sector but the wider energy landscape.
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Dozens
of high-quality, expert-reviewed asset specific valuations
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1,700+
projects in the pipeline, with more added by the day
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1,100
companies involved, making the sector ripe for consolidation
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80+
countries with announced projects
The Wood Mackenzie hydrogen advantage
Our people
A worldwide team of industry experts, comprising not just dedicated hydrogen and ammonia analysts but also specialists across the increasingly connected energy, chemicals and metals value chains.
Our data
Comprehensive proprietary datasets to assess the current and future hydrogen and ammonia landscape, including project details, levelised costs, revenues and subsidy support, demand, supply, pricing, emissions and vendor details.
Our platform
Decision intelligence built to provide an integrated view across assets, portfolios, companies, markets and technologies, delivering actionable insights that enable first-to-market advantage.
How Lens Hydrogen can help
Our Lens Hydrogen platform gives you access to an unparalleled breadth of information and insight to underpin your decision making:
- Reliable, accurate cost trends for assured strategic planning, negotiations and asset management
- Bottom-up demand and supply outlooks focused on fundamental drivers to navigate speculative environments
- Cost-of-displacement pricing curves based on detailed analysis of hydrogen production methods, with clear breakdowns of production costs and supply margins
- Expert qualitative insight from our renowned industry analysts, giving you impactful perspectives on policy, supply and demand, opportunities, tech trends, supply chain constraints and risk
- Wider contextualisation through seamless collaboration with our power & renewables, energy, chemicals and metals & mining teams, plus relevant solutions such as our Lens Carbon platform, which provides the critical data and analysis needed to screen, benchmark, value and analyse carbon reduction, avoidance and removal opportunities
Key benefits of Lens Hydrogen for developers and utilities
Lead the energy transition
Lead the energy transition
- Rapidly adapt to changing market conditions
- Diversify your project portfolio
- Supplement your revenue streams
Increase productivity and lower costs
Increase productivity and lower costs
- Immediate insights delivered in seconds
- Custom visualisations and analysis in a single tool
- No specialist skills or resources needed
Make smarter decisions
Make smarter decisions
- Identify high-growth low-carbon investments
- Access trusted, analytics-ready data
- Employ critical decision-support tools
Validate your corporate strategy
Validate your corporate strategy
- Test assumptions to analyse risk
- Access renowned WoodMac expertise
- Confirm decisions based on granular data