In the comments section of the previous post concerning Germany’s voluntary abandonment of nuclear power, a reader supplied a link to this article from Hamburg, cheering the destruction of one of the country’s last coal-fired power plants to make way for the Green’s current wet dream, hydrogen energy:
December 2024
The article, dated November 14, 2024, provides this excited summary of the new frontier:
The upcoming electrolyzer, contracted to Siemens Energy, is set to begin operations in 2026. Initially, it will produce 100 megawatts of power, with plans to scale up to 800 megawatts. This development is part of a broader strategy to ensure a reliable, affordable, and climate-friendly energy supply for Hamburg's industrial sector without compromising its industrial base.
I checked: They’ve yet to break ground, and the predicted start up date of 2026 has now been pushed back 2027. Uh huh.
So what are some of the problems with using hydrogen to generate electricity? Despite my distrust of Google’s AI, I asked, and got back this summary:
AI Overview
Hydrogen is not the future because of significant challenges in its production, storage, infrastructure, and efficiency compared to alternatives like direct-use electricity. Producing hydrogen, especially "green hydrogen," is currently very energy-intensive, with a net energy loss during the process, and most hydrogen is produced using fossil fuels. Furthermore, building the necessary high-pressure storage tanks, a sparse network of refueling stations, and the required infrastructure is expensive and logistically complex.
Production and efficiency issues
Energy inefficiency:
It takes more energy to produce hydrogen than can be extracted from it. It is more efficient to use renewable electricity directly than to convert it to hydrogen first, which has an energy efficiency loss of 20% to 40%.
Dirty production:
Most hydrogen today is produced using fossil fuels like natural gas, which releases carbon dioxide. Producing "green hydrogen" from renewable electricity is expensive and less common.
Infrastructure and cost
Expensive storage and transport:
Hydrogen is difficult to store because it must be compressed to very high pressures, requiring thick, heavy, and expensive tanks that can be brittle and prone to cracking.
Limited and expensive infrastructure:
Refueling stations are scarce and expensive to build. Many existing stations have limited capacity, making them inefficient compared to gasoline stations or EV charging locations.
Technical and economic challenges
Rare materials:
Fuel cells rely on expensive and rare metals like platinum and iridium, whose supply could become problematic with high demand.
Cold-weather performance:
Hydrogen fuel cells can have a "cold start problem" because the water they produce can freeze in cold temperatures.
Cost competitiveness:
Green hydrogen is not yet economically competitive with fossil fuel-based hydrogen or direct-use electricity, despite ongoing research and development.
Regulatory and public perception concerns
Regulatory hurdles:
Some regulatory bodies, like the California Air Resources Board, have labeled hydrogen-powered trucks as a "dead-end technology".
Public perception:
Historical accidents, like the Hindenburg disaster, have left a lasting negative public impression of hydrogen as a fuel, even though the event was not directly caused by hydrogen as a fuel source.
And digging deeper, I found this article from Bloomberg, dated August 12, 2024:
The vast majority of projects don’t have a single customer stepping up to buy the fuel.
[M]any of the projects now touted with great fanfare by countries vying to become “the Saudi Arabia of hydrogen” will likely never get built. Just 12% of hydrogen plants considered low-carbon because they avoid natural gas or mitigate emissions have customers with agreements to use the fuel, according to BloombergNEF.
Most of the businesses that could run on hydrogen would need expensive new equipment to use it, a leap they're reluctant to make. Hydrogen produced using clean energy costs four times as much as hydrogen made from natural gas, according to BNEF.Aug 12, 2024
The American media blames Trump, of course, because all bad things are his fault, but if that were the case we’d see hydrogen energy projects still flourishing in other countries that are safely removed from Trump’s evil ways. They aren’t, and haven’t been.
Reuters:
MADRID, July 23 2025 (Reuters) - Developers of green hydrogen have scaled back investments and scrapped projects globally as elevated production costs and weak demand for the low-carbon fuel have made many ventures unviable.
Here are some projects that have been cancelled, postponed or scaled back.
EUROPE
** Energy company LEAG's plans to build one of Europe's largest green energy hubs on the site of disused coal-fired power plant units in eastern Germany have been postponed indefinitely, it said in June.
** Steelmaker ArcelorMittal had planned to convert two plants in Germany to green hydrogen, but it shelved the 2.5 billion euro ($2.9 billion) plan in June despite the offer of 1.3 billion euros in public subsidies.
** Iberdrola, Europe's largest utility, scaled back its green hydrogen ambitions by almost two thirds in March 2024 after funding delays for some projects. Its 2030 production target fell to about 120,000 tons of green hydrogen a year, compared with a previous goal of 350,000 tons.
** Spain's Repsol cut its 2030 target for green hydrogen production by up to 63% in February to between 0.7 gigawatts (GW) and 1.2 GW of electrolyser capacity by the end of the decade, with Chief Executive Josu Jon Imaz highlighting the challenges of a high-cost industry heavily reliant on subsidies.
** BP opens new tab said in April that it was shutting its team looking into hydrogen and liquefied natural gas (LNG) for transport.
** Shell scrapped plans for a low-carbon hydrogen plant on Norway's west coast owing to lack of demand, it said in September, days after Equinor cancelled a similar project planned for Norway.
** Oil refiner and biofuel maker Neste withdrew in October from an investment into renewable hydrogen production at its plant in Porvoo, Finland, citing challenging market conditions.
AUSTRALIA
** Origin Energy said in October that it intended to exit a potential hydrogen development project in the Hunter Valley Hydrogen Hub in New South Wales.
** Global commodities trader Trafigura in March abandoned plans to build a A$750 million ($491.5 million) green hydrogen plant at its Port Pirie lead smelter in South Australia.
** Australian billionaire Andrew Forrest in July last year cut back plans for his company, Fortescue, to produce 15 million metric tons of green hydrogen by 2030, blaming costs and the amount of renewable energy sources needed.
** Woodside Energy Australia’s largest independent oil and gas producer, shelved two green hydrogen projects in Australia and New Zealand last September.
** The Queensland state government this year pulled funding for a A$12.5 billion plant to produce 200 tons of liquefied hydrogen by 2028, placing the future of one of Australia’s largest and most advanced green hydrogen projects in serious doubt. Japanese investors Kansai Electric and Iwatani exited soon after.
UNITED STATES
** U.S. startup Hy Stor Energy in September cancelled its reservation for more than 1 GW of electrolyser capacity with Norwegian electrolyser manufacturer Nel.
** Air Products said in February that it was looking to cancel plans to construct a 35 ton per day facility to produce green liquid hydrogen in Massena, New York, largely because of regulatory developments rendering existing hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit.
ASIA
** Japan's Kawasaki Heavy Industries walked away from a coal-to-hydrogen project in Latrobe last December, citing time and cost pressures.