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Hydrogen has emerged as a key player in the global transition to renewable energy, positioned to address critical challenges in decarbonisation, energy storage, and industrial transformation. However, as promising as the hydrogen economy appears, brands operating in this space have a lot to navigate: lack of awareness, high costs, infrastructure gaps, and policy uncertainties.
For companies looking to lead in this rapidly evolving sector, strategic clarity, innovation, and bold advocacy are essential.
Hydrogen is hugely versatile.
This makes it a unique tool for achieving net-zero emissions. Unlike fossil fuels, it can be produced using renewable energy and consumed without emitting carbon dioxide. But is the market ready? How can brands emerging in this space ensure that they are relevant, and that they have the tools they need to create the positive impact we are all dreaming of?
The International Energy Agency (IEA) forecasts that hydrogen could account for up to 10% of global energy consumption by 2050, highlighting its potential to reshape the energy landscape.
The hydrogen market is broadly divided into upstream (production and supply) and downstream (demand-side) segments, each with its own opportunities and challenges.
This segment includes the production of hydrogen through various methods:
Green Hydrogen: Produced via electrolysis using renewable energy. It is central to achieving net-zero goals but currently more expensive than other forms of hydrogen.
Blue Hydrogen: Derived from natural gas with carbon capture and storage (CCS). It is seen as a transitional option until green hydrogen costs fall.
Gray Hydrogen: The most common type today, produced from fossil fuels without CCS. It is carbon-intensive and not aligned with decarbonisation goals.
Infrastructure also plays a key role in the upstream market. Pipelines, hydrogen storage facilities, and refueling stations are critical to scaling hydrogen production and distribution.
The downstream market is where hydrogen is consumed, and it plays three vital roles in decarbonisation:
1. Industrial Transformation: Industries such as steelmaking, cement production, and chemicals depend on high-temperature processes that are hard to electrify. Hydrogen offers a clean alternative to traditional fossil fuels.
2. Heavy-Duty Transportation: Hydrogen fuel cells enable decarbonisation of trucks, buses, ships, and airplanes, overcoming the limitations of battery technology in weight and range.
3. Energy Storage and Grid Balancing: By converting surplus wind and solar power into storable hydrogen, it provides a flexible solution for addressing renewable energy intermittency.
Both segments face challenges related to cost, infrastructure, and policy but offer immense opportunities for growth and innovation.
There is a massive opportunity for early-movers to position their brands as leaders in the space.
PPAs (Power Purchase Agreements) are long-term contracts between hydrogen producers and renewable energy generators, guaranteeing a steady, predictable electricity supply. Their importance lies in:
1. Green Certification: PPAs ensure hydrogen is produced with renewable energy, aligning with decarbonisation goals.
2. Cost Stability: Locking in electricity prices mitigates risks from energy market fluctuations.
3. Stimulating Renewables: By committing to PPAs, hydrogen producers support new solar and wind projects, expanding renewable capacity.
Platforms like Renewable Exchange and LevelTen Energy are streamlining access to competitive PPAs, making it easier for hydrogen producers to scale their operations.
Hydrogen’s potential is undeniable, but the sector faces significant hurdles.
1. High Costs: Green hydrogen production is still significantly more expensive than blue or gray alternatives, though costs are falling with technological advances and scaling.
2. Infrastructure Gaps: Limited pipelines, storage, and refueling stations mean growth can be slow.
3. Policy Uncertainty: Reliance on government subsidies and incentives introduces risks, as policies vary by region and may shift over time.
4. Technology Maturity: Efficiency improvements in electrolysers and storage solutions remain critical.
Despite these challenges, global investments in hydrogen are projected to exceed $300 billion by 2030, offering immense opportunities for brands to lead and innovate.
In a crowded and competitive, but nascent space, successful brands will be those whose innovation is aligned to a strong and unique positioning.
It is not enough to have technical innovation, but rather to focus laser-sharp on a particular sector of the market, and own this with strategic branding and advocacy.
Here are three ways to establish leadership:
A strong, credible brand is essential in an emerging market. But before committing pen to paper, metaphorically speaking, engaging with a strategic agency such as BH&P can help you crystalise and articulate your brand essence. Tools such as Strategy Blocks, the Brand Prizm and Business Model Canvas can help collate a full picture of the internal and external drivers of success, help you understand the competitive landscape and develop a compelling brand proposition to accelerate authentic growth.
Companies should:
Clearly communicate their focus, whether on green hydrogen production, industrial applications, or infrastructure development.
Use digital PR and sustainability influencers to amplify their message, build trust, and attract stakeholders.
Emphasise their role in enabling net-zero goals through transparent storytelling.
Companies that shape the regulatory landscape will gain a competitive edge. Priorities include:
Promoting subsidies, tax incentives, and carbon pricing to bridge the cost gap.
Collaborating on industry-wide standards for carbon accounting and hydrogen certification.
Collaboration across the value chain is essential to reduce costs and scale effectively. This includes:
Partnering with renewable energy providers to secure long-term PPAs.
Collaborating with infrastructure developers to address logistical challenges.
Engaging with policymakers to align on industry priorities and funding opportunities.
Hydrogen’s versatility and scalability position it as a key enabler of the energy transition.
As the market matures, bold leadership, innovative solutions, and strategic collaboration will separate the frontrunners from the rest. By addressing cost barriers, investing in infrastructure, and advocating for supportive policies, brands can unlock hydrogen’s potential to transform the energy landscape and drive a sustainable future.
The journey to net-zero is complex, but for brands willing to lead with purpose and innovation, hydrogen offers a clear path to impactful growth and market leadership.
BH&P work with innovative brands driving real change in energy, finance, data & AI and social responsibility, to help them 10x their impact. For a free initial consultation, get in touch.