The CEO of global renewables giant Enel warned investors in the fast-emerging green hydrogen sector face a “gamble” over whether massive centralised electrolysis or a smaller, distributed production model dominates the market – with the risk of turning sour for those backing the wrong option.

Francesco Starace said cost reductions in the electrolyser industry could make H2 from renewable sources competitive with fossil-based alternatives in as soon as five years, but warned a big unanswered question hangs over the sector.