The Green Hydrogen Catapult initiative aims to spur the development of still nascent green hydrogen markets in order to limit temperature increases to 1.5 degrees.
The initiative and its corporate and institutional partners are working to deliver this positive impact through direct and indirect measures, such as:
Leading by example: demonstrating through their ambitious collective commitment and project pipelines that green hydrogen is capable of scaling to serve demand for decarbonized energy with the support of first-mover customers and enabling measures, and encouraging similar ambition from their peers and policymakers.
Driving down system cost: Developing fact-based insights into key levers for green hydrogen technology cost reduction and performance improvement across the value chain to build confidence and awareness among businesses, policymakers and communities about how shared plans can help to realize cost effective green hydrogen.
Mobilizing GW-scale projects: undertake solutions-oriented collaboration among corporate first movers in key emerging markets i.e. green
steel and green maritime shipping via hands-on “Innovation Labs” to actively design and build future value chains with innovative new business models, contractual and investment structures and align parallel actions among end-use customers (i.e. cargo ship engine retrofits, construction companies, etc).
Supercharging policy: Informing the specific policy measures in focus value chains required to address risks and initial costs required to kick-start green hydrogen markets.
Nascent green hydrogen markets and still-immature supply chains threaten the realization of hydrogen as a global energy source and industrial sectors’ ability to decarbonize.
The specific challenges the Catapult initiative seeks to address to realize required market development are fourfold (and correspond to the solutions above):
Market confidence: potential market participants from adjacent markets have been quietly exploring the opportunity for green hydrogen rather than pivoting business models or opening new business lines to realize the opportunity. More suppliers, investors, customers, and policymakers must see green hydrogen as a viable and valuable energy solution to step up tangible market participation.
Price / value gap: Short-term prices in excess of alternative options disincentivize first movers required to reach thresholds in deployment and cost reduction, after which positive feedback loops in cost reduction and demand stimulation can induce sustained markets.
Market formation: Critical mass of market participants are required to deliver sustained scale required to justify initial investments. Currently, chicken-and-the-egg dynamics block the collective action required to develop effective price signals and initiate procurement and contracting required for bankable project pipelines.
Policy uncertainty: tangible policy measures capable of kickstarting green hydrogen markets remain absent in most geographies. This may in part be because policymakers believe significant and longstanding subsidies would be required to activate green hydrogen markets. Better information of targeted policy solutions to address limited pain points can build confidence needed to unlock policy support.
Energy Compact Description
Green Hydrogen Catapult initiative and partners are working in concert to deliver direct and indirect impacts needed to accelerate the broader green hydrogen market, starting with an overall target of 25 GW by 2026.
Expected direct impacts include:
- Financial investment decisions on projects by Catapult partners and investor partners
- Millions of metric tons of carbon emissions reduction
- Thousands of new jobs as direct result of announced and emerging projects
Potential indirect impacts include:
- Boosted confidence and ambition among other companies and policymakers
- Template offtake agreements and contractual structures for other value chain consortia to adopt
- Best-in-class standards for operational efficiency, system design and technology performance for supply chain and project development companies
- Public information on gaps between currently available and required policy support
Energy compact Indicators
- Cost reduction roadmap resulting from key levers, which account for USD 500 / kWh or USD 5 / kg cost reduction potential to enable procurement of electrolyzers by 2026 that can deliver hydrogen at less than USD 2 / kg
- Identification of 25 GW electrolysis FID by 2026, of which the catapult market formation efforts will realize 2 -5 GW, next to significant contributions from individ