Investment in green energy overtook related spending in oil and gas in 2022.Solar and onshore wind will contribute the most by a sizable margin.Spending on low-carbon projects will increase by $60 billion this year, 10% higher than 2022, led by wind developments but helped by a significant rise in funding for hydrogen and carbon capture, utilization and storage infrastructure, Rystad Energy research shows.
Investments in the geothermal, carbon capture, utilization and storage , hydrogen, hydropower, offshore and onshore wind, nuclear and solar industries are set to hit $620 billion in 2023, up from about $560 billion last year. Service segments included in our calculations include project equipment and materials, engineering and construction, wells, operations and maintenance, and logistics and vessels.
Spending growth will vary widely across industries. Hydrogen and CCUS are expected to see the most significant annual increase, growing 149% and 136%, respectively. Total hydrogen spending will approach $7.8 billion in 2023, while CCUS investments will total about $7.4 billion.