Hydrogen is emerging as the most important technology in the transition to a low-carbon economy, according to a survey of energy sector decision-makers by law firm Womble Bond Dickinson (WBD).

Some 38pc of those surveyed said they considered hydrogen as the technology for which R&D is most important, followed by biofuels (29pc) and geothermal (27pc).

The survey asked 170 executives and investors in the sector what they see as the key challenges to its development.

Although 74pc of investors believe hydrogen distribution is too complex, less than half (41pc) of executives surveyed feel that way. Similarly 56pc of investors are worried about cost curve uncertainty, compared with 21pc of executives.

38pc – Respondents who consider hydrogen most important technology for R&D

The report suggests this disparity may be accounted for by the lack of pure-play hydrogen companies and investment mechanisms.

“Companies actively pursuing hydrogen development are often oil majors or other diversified companies,” it says. “Solar and onshore wind, on the other hand, are replete with pure-play investments and tightly focused funds.”

Blue to green

Investors and energy executives are aligned on the value of green hydrogen, however. Nearly 30pc of both groups say green hydrogen is worth the wait.

Meanwhile, 49pc of investors and 51pc of executives say blue hydrogen is a bridge to a long-term shift to green hydrogen. Only 22pc of investors and 21pc of executives say blue hydrogen is a technology that is ‘here to stay’.

Hydrogen is also considered the second-most important investment opportunity in the transition, after battery storage.

However, only 31pc of respondents are actively investing in hydrogen projects, compared with 34pc for biofuels, 35pc for offshore wind and 50pc for solar, reflecting the nascent state of the hydrogen sector.

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Author: Tom Young