Hydrogen's reawakening has market on verge of a breakthrough

Hydrogen’s reawakening has market on verge of a breakthrough

Bloomberg.com | Mike Pruzinsky | August 22, 2025

Once dismissed as too costly, too complex, or too early, hydrogen is staging a reawakening and this time, the conditions are different. Policy, technology, and industrial demand are aligning to make hydrogen a credible solution for decarbonizing Europe’s most difficult-to-abate sectors. As governments introduce binding mandates and offer generous subsidies, hydrogen is evolving into a clean technology solution capable of fostering the transition to the low carbon economy. The Bloomberg Hydrogen Screened Total Return Index (BHJENET) offers a systematic, research-based and compelling method for tracking the companies across the hydrogen supply chain.

Why hydrogen?

Hydrogen solves a core energy transition dilemma: how to decarbonize sectors where electrification falls short. Industrial processes such as steel and cement production, long-haul aviation, and maritime shipping require energy intensity and storage capabilities beyond what batteries or grid electricity can offer. That has led to a search for an energy source capable of meeting climate goals. Hydrogen can meet those demands in two ways: by being burned directly (it burns more cleanly than fossil fuels producing only water vapor) or through fuel cells that generate electricity via electrochemical reactions.

This has led to governments around the world ramping up financial support for hydrogen, signaling strong commitment to scaling low-carbon fuel production. From a regional perspective, the EU and member states offer the most funding with $118 billion.



European policy tailwinds are accelerating demand

What was once a theoretical policy goal is becoming legislative reality. The European Commission’s proposed “delegated act” on low-carbon hydrogen, expected to take effect by late 2025, will formally include both blue hydrogen (natural gas with carbon capture) and nuclear-derived hydrogen in low-carbon fuel quotas, subsidies, and tenders. This represents a meaningful shift and could lead to new incentives as well as target formation for low-carbon fuels....more
https://www.bloomberg.com/professional/insights/markets/hydrogens-reawakening-has-market-on-verge-of-a-breakthrough/

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