Hydrogen Economy: Investment Outlook and Market Readiness

The hydrogen economy remains one of the most debated topics in energy transition investment. While government subsidies and targets have accelerated project development, fundamental questions about cost competitiveness, infrastructure readiness, and end-use demand remain.

Our investment outlook examines the realistic timeline for green hydrogen cost parity, the critical role of electrolyser manufacturing scale-up, and the sectors where hydrogen offers compelling advantages over direct electrification. We conclude that selective, corridor-based hydrogen investments offer the best risk-adjusted returns, while hub-and-spoke distribution models face significant infrastructure challenges.