Gas turbine manufacturers are facing risks by betting on the future of hydrogen in the energy transition, as questions persist about the technology’s suitability for decarbonisation.

A lack of hydrogen supply, pipeline infrastructure and storage capacity are significant and costly barriers to overcome, according to a report from Global Energy Monitor (GEM). Even using green hydrogen provides little emissions benefit until it’s blended at high levels, the climate research group said.

Manufacturers have focused their research on gas turbines with flexible power generation that can burn hydrogen to be a key part of the energy transition, according to GEM. Asia currently accounts for most of the 175 gigawatts of capacity under construction, the group said.

“Gas turbine manufacturers are gambling on gas remaining a significant part of the future energy mix by continuing to invest in hydrogen technology,” said Jenny Martos, a project manager at GEM. “But they’ve misread the market before and may once again be making a bad bet.”

GE Vernova Inc, Siemens Energy AG, and Mitsubishi Power Ltd dominate the gas turbine market with nearly two-thirds of the world’s capacity under construction, according to GEM. GE Vernova leads with almost 55 gigawatts under development, the group said.

  - Bloomberg