Hydrogen: the opportunity for investors
As the hydrogen market evolves rapidly, investors and financial institutions must stay informed to remain competitive. With opportunities emerging quickly, those who track market trends closely will be best positioned to seize them. Delaying action could mean missing out.
A critical element of the energy transition
Hydrogen is already a key player in the energy market, but its potential to decarbonise both difficult-to-abate sectors and carbon-intensive hydrogen supply makes it crucial for the energy transition. With growing policy support and investments, the hydrogen project pipeline is expanding rapidly, enabling the technology to scale and achieve significant cost reductions. As these advancements continue, we expect hydrogen’s role to grow, with prices set to become increasingly competitive as technology advances. 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
The global push towards sustainability is reshaping how the financial sector approaches investment. Net zero represents a US$63 trillion investment opportunity for low-carbon solutions, including hydrogen. This move to clean energy requires substantial resource allocation, new technology and innovation, largely driven by private capital.
As an investor, you want to find opportunities, broker deals and generate returns from the hydrogen opportunity. At the same time, you need to understand and address the risks involved, making continual trade-offs on the risk-return spectrum. To do that effectively, you need visibility of the full hydrogen value chain, not just as it is now but also how it will develop over the long term.
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, the rapidly evolving hydrogen sector offers a clear and growing opportunity for investment.
In a dynamic and rapidly moving market, it’s vital to act now to maximise the opportunities on offer. 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:
- Understand fiscal and state level economic implications, and get support with comprehending taxation and government incentives
- Track hydrogen, ammonia, and methanol assets in real-time, with views on operation likelihood
- Run asset valuations to explore the financial viability of a hydrogen project
- Reliable, accurate cost trends for assured strategic planning, negotiations and asset management
- Cost-of-displacement pricing curves based on detailed analysis of hydrogen production methods, with clear breakdowns of production costs and supply margins
- Bottom-up demand and supply outlooks focused on fundamental drivers to navigate speculative environments
- 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 energy, chemicals and metals & mining teams
Key benefits of Lens Hydrogen for investors
Lead the energy transition
Lead the energy transition
- Rapidly adapt to changing market conditions
- Strengthen portfolio diversification
- Transform investment performance
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
- Leverage undiscovered tax benefits from government incentives and policies
Validate your portfolio strategies
Validate your portfolio strategies
- Test assumptions to analyse risk
- Access renowned WoodMac expertise
- Confirm decisions based on granular data