Three conditions—secure demand, coordinated infrastructure and pragmatic regulation—will determine whether low-carbon hydrogen can scale, Shell hydrogen president Andy Beard wrote in an opinion piece.
Demand comes first: Beard argued producers and buyers need confidence that long-term offtake will exist before capital is committed to new hydrogen projects.
Coordinated buildout of transport, storage and related infrastructure is also critical, because supply capacity alone will not create a functioning hydrogen market.
Pragmatic regulation rounds out the framework, with Beard signaling that workable policy design will be needed to turn low-carbon hydrogen from a niche sector into a larger industry.
With hydrogen demanding vast resources, are we ignoring simpler, more direct paths to decarbonization?
As green hydrogen costs fall, when will it break free from subsidies to truly compete with fossil fuels?
Will the global race for hydrogen create new energy superpowers, reshaping geopolitical alliances for the next century?
Low-Carbon Hydrogen in 2025-2026: Investment Records, Policy Challenges, and the Road to Cost Parity
Overview
In 2025, global energy transition investment hit a record $2.3 trillion, up 8% from 2024, showing strong momentum for cleaner energy. However, the low-carbon hydrogen sector faces tough challenges. The International Energy Agency stresses that more targeted government support is needed to unlock hydrogen projects, stimulate demand, and build essential infrastructure. Without this support, new hydrogen projects struggle, facing stiff competition for power and capital from other sectors. This complex reality means that, despite ambitious goals, the hydrogen industry must overcome significant hurdles to scale up and play a major role in the clean energy transition.