WPIC – Platinum Perspectives, Aug 2024

The European green hydrogen industry is gaining momentum thanks to increasing government funding and clear policy setting. Four large-scale electrolyser projects in Europe have recently received final investment decisions, indicating growing industry confidence in green hydrogen. WPIC predicts a significant increase in platinum demand linked to hydrogen, reaching 476 koz by 2028 from 40 koz in 2023. The hydrogen economy presents a new end market for platinum, strengthening its investment case. Fuel cell electric vehicles (FCEV) are expected to drive the majority of platinum demand linked to hydrogen by 2028. Acceleration of FCEV adoption is anticipated due to economies of scale in green hydrogen production, which could significantly reduce hydrogen costs and make FCEVs more competitive with diesel fleets. Despite infrastructure challenges and high costs, the growth of green hydrogen production is expected to continue, contributing to the overall growth of the hydrogen economy and platinum demand.