Clean energy and hydrogen will attract significant investment over the next year, according to a survey by investment bank DAI Magister.
Energy sector investments totalled approximately $3tn in 2023, including 50% of these investments channelled into clean energy initiatives.
DAI Magister’s associate Marion Jeng said: “The trend of investment in clean energy initiatives is likely to persist in 2024, further bolstered by the European Union’s unwavering and increasing policy support.
“While previous clean energy investments predominantly focused on infrastructure development, we see the next wave pivoting towards software-driven solutions that optimise energy systems and streamline operations through AI, Big Data, and IoT.
“Additionally, with the proliferation of renewable energy, we can expect continued interest from investors in energy storage solutions.”
As hydrogen projects transition from the exploratory to the developmental phase, the size of individual investments will increase DAI Magister has predicted.
Jeng said: “We anticipate larger transactions and investments as hydrogen projects move from initial pilot projects into a growth and scaling phase.
“Specific regions in Europe, like the Nordics and Scotland, will leverage their regional advantages and benefit from government support.
“While established projects graduate to growth and look to scale, more nascent projects like Waste2H2 and Turquoise Hydrogen will still need to prove their bankability to potential investors to attract the necessary funding and navigate to the next phase.”