Hydrogen and Ammonia Development Slows Amid High Costs and Policy Uncertainty
The development of low-carbon hydrogen and ammonia is experiencing a slowdown due to high costs, policy uncertainty, and weak commercial interest. Despite some strategic interest, project advancements have become uneven, with fewer final investment decisions (FIDs) following a peak in 2023. Concurrently, rising energy demand is solidifying natural gas's role in the global energy landscape.
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The development of low-carbon hydrogen and ammonia has significantly slowed, facing challenges such as high costs and policy uncertainty, as discussed at LNG2026's session on hydrogen and ammonia. Progress has become uneven, and final investment decisions (FIDs) have declined since a peak in 2023. Meanwhile, rising energy demand, partly driven by AI, is reinforcing natural gas's status as a core energy source rather than a temporary solution.
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