Hydrogen Council teams up with investor network to accelerate clean fuel development

Joint forum will focus on mutual recognition of certification projects for clean hydrogen and fostering global industry standards

A worker inspects a water and hydrogen separator at a green hydrogen plant in Puertollano, Spain. Bloomberg

The Hydrogen Council, a Belgium-based international body looking to boost the use of the clean fuel, and the One Planet Sovereign Wealth Funds Network have launched a joint forum to accelerate the development of clean hydrogen.

The initiative will “foster a dialogue” between hydrogen industry leaders and leading investors to speed up the development of the clean hydrogen economy and contribute to reducing greenhouse gas emissions, the organisations said in a statement on Thursday.

The forum will also work on “unlocking” the potential of the hydrogen economy in emerging and developing markets, they said.

“As we scale up the clean hydrogen value chain, consistent standards and an aligned vision between industry leaders and global investors will be crucial for success,” said Sanjiv Lamba, chief executive of Linde and co-chairman of the Hydrogen Council.

The partnership between the Hydrogen Council and OPSWF is “well positioned” to support the development of clean hydrogen and cross-border trade in the low-carbon fuel, Mr Lamba added.

The OPSWF Network includes about 47 of the world’s largest institutional investors – sovereign wealth funds, asset managers and private equity houses – that together own or manage $37 trillion worth of assets.

The Hydrogen Council, launched in 2017, includes some of the world's leading energy companies among its members.

The joint forum has set out an 18-month road map and will focus on mutual recognition of certification projects for clean hydrogen and its derivatives.

The platform will also promote the uptake of common global industry standards that are “technically feasible” and “scientifically robust”, the organisations said.

“Global standards developed by standard development organisations will play a key role in informing the environmental, social and governance (ESG) reporting frameworks for investors in this new asset class,” they added.

The joint forum will also seek to advance “capacity building” and “knowledge sharing” coupled with financing solutions to boost green industrialisation in emerging and developing markets.

“Unlocking the socioeconomic value of clean hydrogen and derivatives, and developing robust global sustainability standards and certification solutions, are critical priorities for the industry,” said Yoshinori Kanehana, chairman of Kawasaki Heavy Industries and co-chairman of the Hydrogen Council.

“Joining forces with the global investors to advance these priorities through the joint forum and its partners is instrumental to accelerate the delivery of hydrogen projects to support our net-zero goals.”

Hydrogen, which can be produced from renewable energy and natural gas, is expected to become a critical fuel as economies and industries transition to a low-carbon world.

It comes in various forms, including blue, green and grey. Blue and grey hydrogen are produced from natural gas while green is derived from splitting water molecules through electrolysis.

Almost one quarter of global hydrogen demand – about 150 megatonnes per year – will be met through international trade by 2050, while the remaining 75 per cent will be domestically produced and consumed, the International Renewable Energy Agency said in a report last year.

Globally, the hydrogen industry is expected to be worth $183 billion by 2023, up from $129 billion in 2017, according to Fitch Solutions. French investment bank Natixis estimates that investment in hydrogen will exceed $300 billion by 2030.