January 2026 | Clean Fuels & Chemicals Advisory
Difficulties for projects reaching financial close in the clean hydrogen (H₂) market can be explained by a slower than expected transition to clean fuels. Despite making significant strides, the European Union (EU) still faces challenges stimulating sufficient demand in a nascent clean hydrogen market. Substantial subsidy programs aimed at closing the hydrogen price gap are incentivising suppliers to enter the market, yet new hydrogen projects still face difficulties in reaching financial close.
EU policies penalising carbon emissions are in place and will become increasingly stringent between now and 2050, with an initial phased-in approach. These policies offer executives a realistic transition period to adopt renewable and/or low carbon hydrogen and derived fuels. Currently, insufficient market demand means project developers are struggling to identify offtakers.
Complete the form below to download the full white paper.