Green hydrogen sector faces economic setbacks and limited metal demand

The green hydrogen sector is facing significant economic and industrial challenges. Plug Power has canceled plans to construct a green hydrogen plant at the Port of Antwerp, citing uncertainty regarding its economic viability. This decision is expected to result in a $15.9 million loss for the company. Additionally, the U.S. Department of Energy previously withdrew a $1.66 billion loan guarantee for Plug Power after the company failed to meet a first drawdown deadline.

In the metals market, the anticipated demand for platinum group metals (PGMs) driven by the hydrogen economy is proving lower than expected. While electrolyser capacity is projected to reach 7,000MW this year, this scale is estimated to absorb only 45,000 ounces of platinum supply. This represents a small fraction of the 7.7 million ounces in annual platinum demand. As the hydrogen-driven demand for PGMs remains limited, the sector is shifting focus toward other industrial uses, including the growing demand for ruthenium and iridium within the technology and AI infrastructure sectors.