Low carbon hydrogen set for investment rebound, reveals new survey

More than 29% of those looking to invest in low carbon projects next year are looking at hydrogen, up from 21% in the previous year, and bolstered by increased interest from central Europe and the Middle East.

The findings come as part of a major new survey into global low carbon energy investment trends, conducted by Pinsent Masons and Censuswide, which found that investment funds and developers both small and large see hydrogen projects being a stronger focus area for them going forward.

The study draws on responses from almost 1,000 active VC investors and technology developers around the world, to highlight current and future trends for investment, technological growth and regulatory conditions.

Stacey Collins, an energy transition expert with Pinsent Masons, said the results were consistent with existing global energy trends.

“Importantly, this low carbon hydrogen rebound is not confined to any single production pathway,” he explained.

“Green hydrogen, blue hydrogen and other low‑carbon routes are all attracting attention, driven by increasing demand from industry, transport and energy‑system balancing.

“What matters most for investment decisions is not the colour of the hydrogen, but whether projects can demonstrate credible offtake, infrastructure integration and regulatory certainty.”

Traditional green energy projects such as solar and wind lag behind the renewed interest in hydrogen, while an increased focus on smaller scale nuclear projects – aided by new European support strategies – has seen more than 26% of respondents say they plan to invest in the sector in the next 12 months, with South Africa, the UK and Ireland showing the most interest in the nascent field.

Laura Ayre, a supply chain expert with Pinsent Masons, said the findings highlighted how a shift in project demand had driven the rebound, after recent years had seen projects struggle commercially.

“What is encouraging about the hydrogen rebound is where it appears to be coming from,” she said.

“The renewed confidence we are seeing across global markets is more grounded - it is tied to specific end-use sectors, particularly heavy industry and shipping, where decarbonisation options are genuinely limited and where long-term offtake agreements are increasingly achievable.

“From a supply chain perspective, the more pressing issue is that the physical infrastructure required for hydrogen at scale — pipelines, port facilities, grid connections sufficient for large electrolyser stacks — involves lead times that are not always reflected in project timelines.

“Developers and investors who are serious about hydrogen need to be engaging with infrastructure constraints as an early-stage project question, not an afterthought.”