RE: Q&A23 Jul 2025 12:33
Globally, there's a trend of hydrogen project cancellations due to high production costs, infrastructure challenges, and uncertainty in demand.
In the past, Pakistan, along with Nepal and Myanmar, canceled projects with Chinese companies, including some related to hydrogen.
These cancellations, collectively, represented billions of dollars in lost investment and potential hydrogen production capacity.
Global Context of Hydrogen Project Cancellations:
High Production Costs:
Green hydrogen, produced using renewable energy, is significantly more expensive than hydrogen derived from fossil fuels.
Infrastructure Challenges:
Building the necessary infrastructure for hydrogen production and distribution is a major undertaking, and the long-term demand for hydrogen is still uncertain.
Technology Maturity:
While hydrogen has potential, it's not yet a fully mature technology, and some projects face delays or cancellations due to technological limitations.
Economic Fragility:
Economic conditions and government policies can significantly impact the viability of hydrogen projects.
Policy Dependency:
Government support, including subsidies and regulations, is crucial for the development of the hydrogen industry.
Competition from Other Fuels:
Hydrogen faces competition from established fuels like natural gas, especially when considering cost and infrastructure availability.
Next.
You'll start banging on about gold again soon.