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LONDON - HydrogenOne Capital Growth plc, a London-listed investment fund focused on clean hydrogen, has reported a significant upward revision in its growth projections for the clean hydrogen sector, despite recent industry challenges. The fund’s Investment Adviser, HydrogenOne Capital LLP, released these findings in its annual "Hydrogen Handbook."
The report highlights the enduring structural drivers of the industry, such as the need to address climate change, improve air quality, and enhance energy security. It notes the current global market for ’grey’ hydrogen, which is valued at $175 billion annually but generates emissions equivalent to twice the United Kingdom (TADAWUL:4280)’s total greenhouse gases (GHG). Transitioning to clean hydrogen is seen as a crucial step in reducing these emissions.
Despite setbacks including supply chain issues, inflation, rising interest rates, and geopolitical tensions stemming from the Russia-Ukraine conflict, the sector’s expansion is accelerating. The report indicates that 3 million tonnes per annum (mtpa) of green hydrogen is currently under construction. This is expected to result in a 15-fold increase in supply from 2024 to 2027, backed by an investment of approximately $69 billion. Advancements are most notable in industrial gas, buses, stationary power, and e-fuels.
Dr. JJ Traynor of HydrogenOne’s investment adviser commented on the sector’s resilience and growth, stating that the 2025 industry projections have more than doubled for clean hydrogen supply by 2027, despite the headwinds.
HydrogenOne, launched in 2021, aims to deliver capital growth by investing in a diversified portfolio of hydrogen and complementary hydrogen-focused assets. INEOS Energy is a strategic investor in the fund, which is also an Article 9 climate impact fund with an integrated ESG policy for investment decisions and asset monitoring.
The report’s publication comes at a time when the clean hydrogen industry is considered strategic for its potential to replace fossil fuels, particularly in sectors like shipping, rail, heavy goods vehicles, and power generation. It also emphasizes clean hydrogen’s role in large-scale storage and shipping of renewable power, which could contribute significantly to grid balancing and energy security.
This analysis is based on a press release statement from HydrogenOne Capital Growth plc.
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