HydrogenOne Capital Growth plc Annual Sector Review: Doubling Clean Hydrogen Forecasts Amidst Headwinds
Key Ideas
  • HydrogenOne Capital Growth plc's annual review highlights a positive outlook for the clean hydrogen sector, with forecasts for growth more than doubling despite industry challenges.
  • The long-term industry drivers remain focused on climate change, air quality, and energy security, with clean hydrogen presenting solutions for reducing GHG emissions and transitioning away from fossil fuels.
  • Although facing headwinds such as supply chain shortages and geopolitical issues, the clean hydrogen sector is experiencing rapid growth, with significant investments and construction projects underway.
  • Dr JJ Traynor expressed optimism in the sector's growth, projecting a substantial increase in clean hydrogen supply by 2027 and emphasizing the importance of the 2025 Hydrogen Handbook as a valuable resource for investors.
HydrogenOne Capital Growth plc, a London-listed fund specializing in clean hydrogen investments, has released its annual review of the hydrogen sector, known as the 'Hydrogen Handbook.' The report showcases a positive trajectory for the clean hydrogen industry, with forecasts for growth more than doubling despite facing challenges. The core drivers for the sector remain focused on addressing climate change, improving air quality, and enhancing energy security. The current 'grey' hydrogen market, valued at $175 billion annually, emits a significant amount of GHG emissions, emphasizing the need for a shift towards clean hydrogen solutions. Clean hydrogen and its derivatives like e-fuels and green ammonia are being increasingly recognized for their potential in replacing fossil fuel systems across various sectors including transportation and power generation. The report also highlights the role of clean hydrogen in large-scale renewable power storage and grid balancing. While the sector has encountered obstacles such as supply chain disruptions and geopolitical tensions, significant progress is evident with the construction of 3mtpa green hydrogen projects and substantial investments totaling $69 billion. Dr JJ Traynor, representing the Investment Adviser, remains positive about the sector's growth, projecting a significant increase in clean hydrogen supply by 2027. Despite challenges, the report aims to provide valuable insights for investors navigating the evolving landscape of the clean hydrogen industry.
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