For gas turbine manufacturers, it is a risk to rely on hydrogen as a future energy transition, as doubts remain about the suitability of this technology for decarbonization.

A lack of hydrogen supply, pipeline infrastructure and storage capacity are significant and costly obstacles to overcome, according to a report by the Global Energy Monitor. Even using green hydrogen will provide little emissions benefit unless it is blended in large quantities, the climate research group said.

According to GEM, manufacturers are focusing their research on flexible power generation gas turbines that can burn hydrogen to play a key role in the energy transition. Most of the 175 gigawatts of capacity currently under construction is in Asia, the group said.

“Gas turbine manufacturers are betting that gas will continue to play a significant role in the energy mix by continuing to invest in hydrogen technology,” says Jenny Martos, project manager at GEM. “But they have misjudged the market before and could make the wrong decision again this time.”

GE Vernova Inc, Siemens Energy AG and Mitsubishi Power Ltd. dominate the gas turbine market with nearly two-thirds of global capacity under construction, according to GEM. GE Vernova leads the way with nearly 55 gigawatts under development, the group said.