The development of green hydrogen as an energy source of the future offers numerous investment opportunities linked to the energy transition. While still a young industry, hydrogen was the fastest growing sector globally in 2022 among those contributing to this transition, with investment more than tripling from 2021.
Support from the private sector, a growing list of legislative initiatives and many countries’ net zero commitments presage a vast amount of activities across industries in which hydrogen has a major role to play. Many observers see green hydrogen as a necessary pillar to achieve net zero: it has the potential to help many countries drop fossil fuels and embrace renewable energy. Green hydrogen´s market worth could reach USD 11 trillion by 2050.
In this video, Edward Lees, co-head of our Environmental Strategies Group, explains the basics, the challenges hydrogen faces as well as the investment opportunities it could bring across sectors.
1 Source: BloombergNEF. “Energy Transition Investment Trends”, Jan 2023
2 Source: Goldman Sachs, Feb 2022
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.