SINGAPORE – Hydrogen will play a crucial role in driving the green transition with demand expected to surge in the coming decades.
Around 60 governments have adopted hydrogen strategies, while the number of planned projects is already exceeding 1,500 globally compared to around 200 in 2021 – an increase of around 600%.
To realize these projects, a total investment volume of US$680bn until 2030 may be needed, according to the Hydrogen Council and McKinsey, which will trigger a greatly increased demand for insurance to protect against risks as this investment is activated.
Europe is leading the way by far with 617 planned projects and the highest total investment announced at $199bn.
While the potential of hydrogen is undoubtable, there are still challenges and headwinds to overcome.
The potential size and scope of the hydrogen economy will depend on a range of factors including the evolving political, trade, and economic environment, as well as demand.
Policymakers and regulators need to address costs for the development of the infrastructure, so that scaling up at a competitive level towards other energy sources is possible.
Across all industries, stringent safety measures will be vital to manage hydrogen’s inherent risks.
