The fallout from this year’s oil market shock has led governments worldwide to reconsider clean hydrogen, despite its higher cost compared to conventional fuels, according to Air Liquide chief executive François Jackow. He said his Paris-based company had engaged with officials in Brussels, France, the Netherlands, Japan, and South Korea about using clean hydrogen as an alternative to fossil fuels following the US and Israeli attack on Iran, which caused oil and gas prices to surge. Energy-importing nations collectively "overspent" over $100bn on inflated fuel prices in the first two months of the conflict that began in February, Jackow noted, adding urgency to reducing fossil fuel reliance. "Hydrogen is not only a way to decarbonise, but also a key element to ensure energy security," he told the Financial Times. "The few billions needed to accelerate the hydrogen ecosystem seem small compared with the overall cost during a crisis." The overspend included higher fossil fuel import bills and costs of relief measures like tax cuts and subsidies.

This is not the first time an oil emergency has spurred hydrogen interest; a hydrogen-fuelled Cadillac appeared in Jimmy Carter’s 1977 inaugural parade after the Arab oil crisis. The Hydrogen Council’s annual report stated $130bn has now been committed to clean hydrogen projects, 90% of which are either under construction or operational. Two-thirds of surveyed industry executives identified energy security and resilience as the top drivers for renewed interest.

While hydrogen is used in refining and fertiliser production, most is made from natural gas with carbon emissions. Cleaner forms include carbon capture or renewable-powered electrolysis (green hydrogen), which is the most eco-friendly but also most expensive. Jackow noted hydrogen’s role in hard-to-electrify sectors like refining and transport, citing South Korea’s interest in hydrogen-powered buses.

However, over half of planned clean hydrogen capacity is in China, raising concerns about dominance if Europe does not accelerate its plans. "We must build multiple supply chains, we need sovereignty and resilience," Jackow warned, drawing a parallel to the electric vehicle market.