A fracking drill rig used to extract natural gas — a hydrogen feedstock — and crude oil.
Source: grandriver / E+ via Getty Images
The energy industry is far from a consensus on whether blue hydrogen derived from natural gas can be considered “clean.” Its cost-competitiveness is now being called into question, with a proxy advisory firm warning that policy and market forces could turn blue hydrogen into a stranded asset.
“All things considered, there is a significant risk that blue hydrogen assets become white elephants,” ISS ESG, Institutional Shareholder Services Inc.’s responsible investment arm, said in a July 12 analysis.
Hydrogen is a clean-burning gas, but more than 95% of industrial hydrogen today is gray hydrogen produced from fossil fuels without carbon capture technology. As countries such as the U.S., Canada and European Union member states push…