BRUSSELS, Sept. 17, 2024 /PRNewswire/ -- The global clean hydrogen project pipeline is growing and maturing, with a sharp increase in projects reaching final investment decision (FID), according to the Hydrogen Council's latest analysis of more than 1,500 projects worldwide. At the same time, the pace and scale of deployment need to accelerate dramatically to meet global climate goals.
The Hydrogen Insights 2024 report, released today and co-authored by McKinsey & Company, reveals that while the global project pipeline has grown by a factor of seven since 2020 from 228 projects to 1,572 projects, as of May 2024, it has also matured, with a strong focus on advancing projects towards execution. Most notably, clean hydrogen projects that reached FID have also seen a seven-fold increase in committed investment, growing from approximately USD 10 billion across 102 projects in 2020 to some USD 75 billion across 434 projects in 2024.
The most recent data from October 2023 to May 2024 further underscores a clear shift from project planning to implementation. Total announced investments through 2030 have increased by approximately 20% – from USD 570 billion to USD 680 billion. The most notable growth has occurred in the more advanced stages of project development, with investments past FID growing by a remarkable 90%, followed by a 30% increase in front-end engineering design (FEED) stage projects.
This clear shift across the global project pipeline from announcements to implementation is coupled with natural attrition that fosters industry maturation by eliminating less viable projects and prioritising those with the highest potential, a pattern also seen in the early stages of other clean energy industries such as wind and solar.
Jaehoon Chang, President and CEO of Hyundai Motor Company and Co-Chair of the Hydrogen Council, said: "The seven-fold increase in committed capital for hydrogen projects reaching FID over the past four years demonstrates the industry's progress. We are pleased to see the industry walking the talk at this critical transitional moment, as evidenced in the latest Insights report. Moreover, further action is needed to ensure an accessible and affordable hydrogen supply, enabling the widespread adoption of hydrogen."
Despite progress, the hydrogen sector, like other clean energy industries currently, faces macroeconomic headwinds including rising inflation and interest rates, as well as geopolitical tensions affecting energy markets. Sector-specific issues such as regulatory uncertainty and increasing costs for renewable power and electrolysers have led to project delays, particularly for renewable hydrogen projects.
Ivana Jemelkova, CEO of the Hydrogen Council, said: "This report sends a clear message: hydrogen is happening. Now that hydrogen is a reality in the energy transition, it's time to drive significantly more investment by 2030 to meet our mid-century targets. Equipped with concrete lessons learned from the past four years, we must urgently address challenges in key markets and create a more favourable environment for project execution."
Sanjiv Lamba, CEO of Linde and Co-Chair of the Hydrogen Council, said: "Realising hydrogen's full climate and socio-economic potential requires a united effort from governments and industry. With a supportive regulatory framework and targeted incentives, investors will have the certainty they need to move projects to FID – ultimately contributing to achieving global climate targets."
About Hydrogen Insights
Hydrogen Insights is the Hydrogen Council's regularly published perspective on the hydrogen industry's evolution. It summarises the current state of the global hydrogen sector and actual hydrogen deployment. Authored by the Hydrogen Council in collaboration with McKinsey & Company, the report draws on a combination of public information and proprietary data from Hydrogen Council members and represents a collaborative effort to share an objective, holistic, and quantitative perspective on the status of the global hydrogen ecosystem.
About The Hydrogen Council
The Hydrogen Council is a global CEO-led initiative with a united vision and long-term ambition for hydrogen to accelerate the clean energy transition. It brings together a diverse group of 140 companies from 20 countries across Americas, Europe, Africa, the Middle East and Asia Pacific. Spanning the entire value chain, and including large multinationals, innovative start-ups as well as investors, the Council's membership represents some $9 trillion in market capitalization, 6.8 million in FTEs and some $6.4 trillion in revenues.
The Council is committed to unlocking the sustainability potential of clean hydrogen, fostering business and technological innovation as drivers for sustainable growth, creating quality jobs and delivering social value. Using its global reach to promote collaboration between industry, governments, investors, and the civil society, the Council provides insights on and pathways for accelerating the deployment of hydrogen ecosystems around the world. It also supports the development of international safety and sustainability standards, paving the way for the deployment of reliable hydrogen solutions at scale.
To find out more visit www.hydrogencouncil.com and follow us on X @HydrogenCouncil and LinkedIn.
Media Enquiries
Joanna Damerell, Communications Manager, Hydrogen Council
Joanna.damerell@hydrogencouncil.com
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Global hydrogen industry reports $75 billion in committed capital but climate targets at stake due to project delays
SINGAPORE, Sept. 19, 2024 /PRNewswire/ -- Although sustainability is a growing business priority, only 6% of business leaders report that their organisation has completed at least one round of sustainability implementation. This is in comparison to 14% from NTUC LearningHub's Special Report on Sustainability 2022. Nevertheless, a positive outlook remains as nearly three quarters of business leaders (72%) share that their organisation will begin its sustainability journey within the next five years or more, marking a 6% increase from the 2022 report.
Employees perceive possessing the knowledge and skills necessary to understand and implement sustainability initiatives at the workplace (6% to a large extent, 55% to a moderate extent, 34% to a small extent). However, more than four in five business leaders (15% strongly agree, 71% somewhat agree) say that there is a gap in expertise and skill sets around sustainability in their organisation where they seek skills like climate change sustainability (30%), environmental management system framework or policy (29%), risk management (29%), sustainability risk and impact assessment (29%), and Environmental and Social Governance (28%).
These are some of the key findings from NTUC LearningHub's Sustainability for Business Resilience Report 2024, which investigates sustainability as a business imperative, the current state of sustainability efforts in organisations, and the critical role of training and certifications. Based on survey involving over 150 business leaders and 350 full-time working professionals, the report also highlights the in-demand job roles and skills that inform and shape individuals' career progression while strengthening the business' resilience.
While nearly a third of business leaders (30%) report having sent their employees for sustainability-related training in the past year, only one in ten employees (11%) report attending sustainability-related training and about half (46%) are unaware of the available programmes in the market. This occurs while both business leaders and employees express similar concerns over training.
When sending employees for training, business leaders grapple with employees being too busy with work to attend training (43%), difficulty in identifying industry-recognised courses (39%) and relevant external training providers or centres (32%), insufficient budget for training programmes (36%), and resistance to change among employees (35%). Meanwhile, employees cite being too busy with work to attend training (43%), training programmes not being fully funded by their company (29%), having no one to cover their work while they are away for training (28%), uncertainty about their skills gaps (28%), and limited in-house training programmes offered by their organisation (27%) as key challenges.
Although nearly four in five business leaders (17% strongly agree, 63% somewhat agree) agree that their organisation has clearly communicated how employees can contribute towards the organisation's sustainability goals, both groups have differing views on the top motivators for sustainability initiatives implementation. Employees report the top three motivators to be cost savings (46%), complying with rules and regulations (44%), and responding to market demand (36%). On the other hand, business leaders cite responding to market demand (54%) as the primary driver, followed by achieving cost savings (49%), and managing risks (43%).
Moreover, one in three employees (33%) lack the confidence in their organisation's ability to effectively implement sustainability initiatives, citing unclear sustainability goals (41%), insufficient budget allocated to sustainability initiatives (34%), and lack of sustainability training programmes (32%) as primary reasons.
Commenting on the report's findings, Mr Tay Ee Learn, Chief Sector Skills Officer, NTUC LearningHub, says, "The findings suggest a possible disconnect between business leaders and employees, likely stemming from a lack of common understanding and therefore shared goal in the journey to implement sustainability initiatives within organisations. Transparent communication is key, but organisations must first develop a clear sustainability roadmap with defined goals to ensure everyone is aligned. This involves prioritising workforce training and development to prepare employees for new and refreshed green roles. Leveraging resources like the NTUC Awareness, Resources, Community (ARC) Framework, which offers sustainability solutions to employers while facilitating the training of their workers, can help organisations address their challenges. Investing in the development of their human capital will go a long way to reassure the workforce that they are valued, allowing both organisations and workers to remain competitive in a dynamic landscape."
To download the Sustainability for Business Resilience Report 2024, please visit https://www.ntuclearninghub.com/media/research-reports/2024/Sustainability. To find out more about the courses, training, and grants, please contact NTUC LearningHub at www.ntuclearninghub.com.
About NTUC LearningHub
NTUC LearningHub is the leading Continuing Education and Training provider in Singapore which aims to transform the lifelong employability of working people. Since our corporatisation in 2004, we have been working with employers and individual learners to provide learning solutions in areas such as Infocomm Technology, Generative AI & Cloud, Healthcare, Retail & Food Services, Employability & Literacy, Business Excellence, Workplace Safety & Health, Security, Human Resources & Coaching and Foreign Workers Training.
To date, NTUC LearningHub has helped over 29,000 organisations and achieved more than 2.6 million training places across more than 2,900 courses with a pool of about 900 certified trainers. As a Total Learning Solutions provider to organisations, we also forge partnerships to offer a wide range of relevant end-to-end training. Besides in-person training, we also offer instructor-led virtual live classes (VLCs) and asynchronous online learning. The NTUC LearningHub Learning eXperience Platform (LXP) — a one-stop online learning mobile application — offers timely, bite-sized and quality content for learners to upskill anytime and anywhere. Beyond learning, LXP also serves as a platform for jobs and skills development for both workers and companies.
For more information, visit www.ntuclearninghub.com.
Press Contact
Gabriel J. Tan
Senior Executive, Public Relations
Email: gabriel.tan@ntuclearninghub.com
Vaiishnavi Karnan
Senior Executive, Public Relations
Email: vaiishnavi@ntuclearninghub.com
Zulaikha Zulkiflee
Manager, Brand & Communications
Email: zulaikha@ntuclearninghub.com
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
Sustainability implementation in organisations is still a Work-in-Progress amid lack of training and employee uncertainty over organisation goals
