Singapore-based HySights has launched a new ratings agency for low-carbon hydrogen- and bio-based fuels projects which it hopes could help overcome lagging final investment decisions (FIDs).
The new system uses an “independent, standardised metric” to evaluate, compare and benchmark projects worldwide from pre- to post-production and covering different production pathways.
It is hoped to provide users with project insights across commercial feasibility, the cost of producing low-carbon molecules and its emissions intensity. Each project is graded from A to F.
Using proprietary AI, HySights says its analysts ensure data accuracy by processing private and public, primary and third-party sources.
So far, the firm says it has completed over 50 project ratings globally, covering hydrogen, ammonia, e-fuels and e-methane, and “continuously adds to its portfolio of rated projects.”
Each project will be reviewed once per quarter “at a minimum.”
The new platform comes as the clean hydrogen industry strives to turn the tide of lagging project FIDs. According to the Hydrogen Council’s Hydrogen Insights 2024 report, FID’d projects made up 11% of the 1,572 project pipeline.
Read more: Hydrogen FIDs grow by $335bn investment gap jeopardises 2030 ambitions
HySights says one key reason for slow project realisation is a “lack of typical risk metrics like a market price, leading to uncertainty and a lack of confidence in new energy investment and offtake decisions.”
Greg Mittman, HySights CEO, explained, “Having spoken to over 165 clients across the value chain, we see market stakeholders struggling to assess and compare the risk and returns of different projects at different locations.
“Evaluating these projects not only demands technical domain expertise, but the nascent New Energy markets also lack pricing information and historical data to guide decision-making.
“With HySights Ratings, stakeholders can now tell – at a glance – how one project compares to another, and how well it compares against the highest industry standards.”
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