RONAN CLOUD, Director of Economic Development, Copper Consultancy

Is the world ready for hydrogen (H₂)? Although many see it as the fuel of the future, the infrastructure needed to support its use at scale is not yet in place. Regardless, it feels as if global change is on the horizon, as Ronan Cloud, Director of Economic Development at Copper Consultancy, explains.

Major economies are making major investments in H₂. In late 2022, the Biden administration (U.S.) passed the U.S. Inflation Reduction Act, which included incentives for producing low-carbon fuels, including tax credits for green H₂ worth up to $3/kg.

The French government also updated its national H₂ strategy in December 2023, planning to produce 6.5 gigawatts (GW) of green H₂ energy by 2030, costing nearly €9 B. The UK government also recently announced substantial funding in its 2021 H₂ Strategy, aiming to produce 5 GW of low-carbon energy by 2030.

Adapt or die. The H₂ sector is clearly experiencing substantial growth. With that growth comes the need for H₂ companies to be flexible enough to adapt and grow with this demand. To be the market leaders of tomorrow, the H₂ companies of today must work through new innovations, regulations and changing situations to be successful.

Failure to manage this transformation comes with immense risk. Larger companies that do not move fast enough will find competitors eating their lunch, while smaller startups may never get off the ground if they do not stay at the cutting edge. Evolution is going to be a constant necessity in the H₂ sector, and companies must stay fast on their feet to benefit from the many opportunities that are appearing.

Communicating through change. So, how can companies in the H₂ sector manage this transformation? One of the key ways is to make sure change management initiatives do not fall on account of bad communications. When you think about it, so much of changing how a business works comes down to buy-in and understanding—things that good or bad communication can make or break. It may not seem like it, but failure to communicate during times of change can be a huge factor in change not occurring.

Copper recently drafted a new report, Turning Sceptics into Believers, that unpacks the importance of communication in managing change programs. The team spoke to key figures across the energy and infrastructure industries, global management consultants and change experts.

From the company’s conversations, they discovered the importance of communication in managing change. Research from McKinsey shows that 70% of transformation initiatives fail; our research demonstrates that stakeholders fail to buy into both the reasons for and outcomes of change.

Effective communications can ensure wide buy-in across stakeholders across the company, ensuring the success of transformation. Here are three of the key learnings we identified from our research:

• Strong leaders are the best at communicating the why for change. These figures are ones who employees should already trust, with a clearly communicated story about “why” and “how” the company will change, they can drive buy-in. A visible leader is important for both internal and external communications. Advocating for change in an employee Town Hall is just as important as in interviews with journalists.
• Change is a journey. Ensuring communications are maintained long past the initial launch is key to ensuring change lasts. That means not just talking about change as a one-off but campaigning consistently and creatively with your key audiences. This should be supplemented by drawing out internal advocates who will speak with authenticity and trust about the program.
• Companies must also be prepared to throw their plans out the window. If circumstances change or the proposed transformations are not working, effectively communicating while revising plans is essential. Part of this involves actively probing for feedback at all company levels while the campaign is ongoing, from senior management to junior staff.

Takeaway. Businesses must learn the art of metamorphosis to ensure a bright future for the H₂ sector. This constant change can be de-risked through effective communications, ensuring stakeholders are brought on board and listened to throughout the process. H₂ is a fuel of the future, but only with the right strategies for change will this future evolve into a reality.