Episode 7

Hydrogen Valleys and the Investment Gap

Host: Zia-Melchior Hoseini

Guest: Dr. Mark Taylor – European Hydrogen Market Leader at Arup (DE)

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In this special edition from Brussels, EnergySpark speaks with Dr. Mark Taylor, a leading figure in hydrogen strategy and innovation across Europe. With a career spanning Formula 1 engineering, UK government climate innovation, and now hydrogen consulting at Arup, Dr. Taylor brings a rare systems-level perspective to the challenges facing hydrogen valleys today. The episode tries to cover urgent questions about why hydrogen projects are struggling to reach Final Investment Decision (FID), what kind of policy instruments are most effective, how to design resilient project governance, and what skills the next generation of engineers and scientists should cultivate.

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Hydrogen valleys face significant barriers because industrial off-takers are hesitant to commit to long-term green hydrogen purchases. Without these contracts, investors lack certainty and projects stall. “You have to make sure your off-taker is able to pay, sign a long-term agreement, and pay the agreed price to make the project financially work.” Dr. Taylor highlights the EU's new PDA mechanism, offering expert support to help project consortia overcome regulatory, commercial, and technical barriers on the road to FID. “I'm very reassured by the PDA process. It's very good news for hydrogen valleys across Europe.” From monthly reports to site inspections, public and private investors demand accountability. “Good governance ensures resilience. And that’s how you get more funding in future rounds.”

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Dr. Taylor warns that CapEx-heavy support for pilot projects often ignores the ongoing OpEx burden, which can crush early adopters once subsidies dry up. “We need policy tools—Contracts for Difference, sliding-scale subsidies, or carbon adjustments—to protect first movers from being undercut by fossil fuels.” Germany’s hydrogen core network is ambitious, but large-scale hydrogen storage is still neglected—even though it's essential for seasonal balancing and grid resilience. “There’s no business model right now for large-scale hydrogen storage. And that’s a problem.” Cross-border hydrogen trade depends on aligning EU sustainability rules with external suppliers. H2Global auctions are a step in the right direction. “Hydrogen from Africa or Australia must meet EU RED III and RFMBO standards. International alignment is a key challenge.” Reflecting on his own career—from aerospace to climate innovation—Dr. Taylor urges young professionals to remain open to change. “The skills you’re learning now will apply in other fields. Be flexible. You can help tackle mankind’s biggest challenge—climate change.”