BAKU, Azerbaijan, March 1. Over the past year, the low-carbon hydrogen project pipeline has doubled to more than 430 projects as of February 2023, dominated by green projects, Trend reports with reference to Fitch Solutions.
“In February 2022, our Key Projects Database (KPD) registered a total of 230 hydrogen projects, including those that are being developed or already reached completion. This pipeline expanded to 435 projects over the rest of 2022. Green hydrogen projects lead the project pipeline, with a total of 410, compared to blue hydrogen’s 23. The total capacity of green hydrogen projects with capacity data is also higher than blue hydrogen, at about 229GW across 279 projects, compared to blue hydrogen's 7GW across five projects,” reads the latest report from Fitch Solutions.
The company analysts believe that the strong expansion of the project pipeline is a result of the growing interest from both investors and developers to back up the hydrogen industry as part of decarbonization plans.
“The average hydrogen project capacity increased from about 640MW in 2022’s pipeline to about 860MW in 2023’s. This also corresponds to the growing average project value, from USD1.6bn to USD2.5bn, which reflects the growing capital demand amid rising sector ambitions flows into the hydrogen production industry over a year. This is reflected in the rise in the number of projects under construction more than doubling from 15 to 34,” reads the report.