Strategy pivots are primary cause of low-carbon hydrogen cancellations
Developers embarking on ‘strategy pivots’ are the main reason for low-carbon hydrogen project cancellations, according to new Rystad Energy research.
It found strategic changes accounted for 24% of cancelled projects, representing around 6 million tonnes per annum of hydrogen capacity, as firms return to core businesses and scale down more risky hydrogen investments.
For example, BP and Australia’s Origin Energy have suspended or cancelled multiple projects, citing the need to cut costs and prioritise core areas.
“This retrenchment is understandable given the nascent and complex nature of clean hydrogen – initial targets often outpaced more realistic business and transition models,” the energy research company states.
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