At its core, hydrogen is an energy carrier. It can store energy, move it and deliver it where it’s needed. That makes it particularly interesting as countries and companies look for ways to cut emissions and build more resilient energy systems.
But turning that potential into something that works in practice is not straightforward.
The catch: how it’s made
Hydrogen itself doesn’t emit carbon when used. But the way it’s produced matters.
Clean hydrogen is made with minimal greenhouse gas emissions – for example, using renewable electricity to split water, or by capturing emissions from production based on natural gas.
That sounds simple. In reality, it brings challenges around cost, infrastructure and demand. These are the issues our clients are dealing with today.
Where it could really matter
Hydrogen is unlikely to replace renewable electricity. Instead, it’s being looked at as a complementary solution – especially in sectors that are harder to electrify.
Think heavy industry like steel and chemicals. Or ammonia production for fertilisers and potentially shipping.
These are some of the toughest areas of the energy transition – and where progress has been slower. That is why hydrogen is getting renewed attention.
What this means for ING
We don’t build hydrogen plants. Our role is to help clients move forward.
That means financing projects, but also helping clients work through the fundamentals:
- where demand will come from
- how projects can become bankable
- what it takes to scale
These questions are often as important as the technology itself.
As Henry Rushton, Henry Rushton, Sustainable Solutions Group - Energy Lead, at ING, puts it:
“Hydrogen has moved beyond the question of whether the technology works. The real challenge now is making projects investable. That means helping clients secure credible demand, structure long-term revenues and allocate risk in a way that gives capital the confidence to move. The first projects that get this right will be critical, not just because they reduce emissions, but because they create the market confidence needed for hydrogen to scale.”
We’re already seeing more activity in this space – but most markets are still at an early stage, and the path to scale is not yet clear.
Where this is heading
Hydrogen is not a silver bullet. But it is seen as one of the tools that can help tackle the harder parts of the transition.
For us, that means staying close to our clients as they navigate these decisions and helping turn plans into something that can actually be financed and built.
This article discusses one or more specific transactions and/or contains general statements about ING’s climate approach. The approach and criteria referred to in this document are intended to be applied in accordance with applicable law. Due to the fact that there may be different or even conflicting laws, the approach, criteria or the application thereof, could be different.
Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on our climate approach.