Is HySpeed's Hydrogen Dream Financially Overstretched?
London, Monday, 19 May 2025.
HySpeed’s £15/kg green hydrogen struggles against cheaper battery tech, casting doubt over its goal of 1 GW production and 24,000 jobs by 2030.
Critics Question HySpeed’s Costly Pledge
HySpeed’s ambitious shot at spearheading the UK’s renewable energy space is under fiscal fire. The company aims to churn out a whopping 1 gigawatt of green hydrogen and create 24,000 jobs by 2030, but experts are wary. Current hydrogen prices at UK refuelling stations hover around a steep £15 per kilogram, shooting up to £21 at times, despite significant subsidies [1]. This steep cost poses a serious threat to the project’s feasibility, especially with battery-electric technologies snapping at its heels with lower prices and greater scalability [1].
A Dicey Move for Investors?
Calling it a ‘defensive move’, Michael Barnard warns that investments in HySpeed might turn into ‘stranded assets’ as the financial burden mounts [1]. The project reflects what Barnard describes as a Big Push strategy, highlighting worries about unrealistic timelines and gargantuan public funding requirements, all amid a lack of a solid market demand [1]. He advises investors to steer clear if they wish to avoid fiscal quicksand [1].
The Battery vs Hydrogen Debate
Now, let’s delve into why batteries are taking the lead. The UK’s Climate Change Committee has cautioned against relying heavily on hydrogen unless it pertains to niche industrial applications. Battery-electric alternatives are making serious headway, and not just because they’re cheaper. Their simplicity and scalability make them a formidable opponent in nearly every transport segment [1]. In comparison, hydrogen technologies seem a bit like the underdog, albeit a fairly expensive one [1].
A Bright Spot in the Hydrogen Horizon?
On a lighter note, the potential for hydrogen to aid global decarbonisation efforts remains strong. The safe and efficient implementation of hydrogen initiatives, supported by collaborations among key industry players and regulatory bodies, might just fuel its journey into the mainstream [3]. Yet, as it stands today, re-strategising might be key. Some experts even suggest redirecting focus towards replacing grey hydrogen in industries rather than setting up a battleground with battery technology [1]. The future might just be in finding harmony between these giants.