The hydrogen industry has the potential to create millions of new jobs globally and play a crucial role in achieving carbon neutrality goals. Industrial projects in hydrogen and renewable energy are rapidly increasing in the global energy transition, requiring new skills worldwide.
In this blog, we examine the key leadership skills needed to drive success in the growing hydrogen sector, based on insights from industry experts.
Gaining support from public sector actors and state backing is crucial for the success of hydrogen projects. Company leaders must be adept at communicating the benefits of hydrogen energy, influencing political decisions, and engaging in societal dialogue.
Creating a strong public relations strategy requires consistent and transparent communication with all stakeholders. Leaders should leverage media and communication relationships to highlight the positive economic and environmental impacts of hydrogen projects. Lobbying political decision-makers and participating in industry forums can also help shape favourable regulatory frameworks.
Hydrogen investment projects often involve lengthy processes for environmental permits and other regulatory approvals. Effective time and expectation management are critical to keep projects on schedule and maintain stakeholder trust.
A comprehensive project management plan with realistic timelines and clear milestones can help manage expectations. Regular updates and open communication with stakeholders can alleviate concerns about delays and ensure everyone is aware of the project’s progress.
Hydrogen industry leaders should have a strong strategic vision that anticipates market trends and technological developments. This vision should be combined with an entrepreneurial mindset and a commitment to innovation, enabling leaders to design and implement strategies that promote growth and adaptability.
Continuous learning and staying informed about the latest developments in hydrogen technology and market trends are essential. Leaders should foster a culture of innovation within their organisation, encouraging employees to explore new ideas and solutions. Collaboration with research institutions and participation in industry consortia can also provide valuable insights and drive innovation.
One of the key challenges in the hydrogen industry is the skills shortage, especially in large investment projects (EPCM/EPC). This issue is particularly pronounced in Finland, where specialised expertise is limited. IRENA’s Renewable Energy and Jobs Annual Review 2023 estimates that the hydrogen economy value chain could create up to 5.4 million highly skilled jobs by 2050. Achieving this potential requires proactive measures to expand educational and training programs.
Leading companies in the industry should collaborate with educational institutions to develop specialised curricula and training programs focused on hydrogen technologies. Investing in apprenticeship and internship programs can also attract young talent and provide them with practical experience. Additionally, leveraging the skills of underrepresented groups, such as women, youth, and minorities, can diversify the talent pool and bring new perspectives to the industry.
Successful hydrogen projects often depend on strong, multidisciplinary corporate partnerships and mutually beneficial outcomes. Company leadership must build and maintain relationships with public and private stakeholders, navigate complex legal negotiations, and secure favourable terms for their projects.
Effective negotiation is a skill that can be honed through training and experience. Companies should invest in professional development programs that enhance negotiation skills at multiple organisational levels. Additionally, hiring or consulting with legal experts specialising in energy and environmental law can provide crucial support in drafting and managing contracts.
Leading multidisciplinary teams and creating a collaborative work environment are essential for success in the hydrogen industry. Inclusive leadership that values diverse perspectives and skills while enhancing team capacity can promote shared achievements and align efforts with business objectives.
Leaders should focus on building a strong organisational culture that emphasises collaboration and inclusivity. This can be achieved through team-building activities, diversity and inclusion training, and creating forums for open communication and feedback. Recognising and rewarding team achievements can also boost morale and encourage collaboration.
Advancing hydrogen projects are dynamic and often unstructured, requiring agile leadership. Experience in budget management, planning, and reporting is crucial to adapt to changing conditions and ensure project success.
Flexibility and adaptability are key traits for leaders in the hydrogen sector. Adopting adaptive project management methodologies, such as Agile or Lean, can help leaders respond quickly to changes and unforeseen challenges. Regular scenario planning and risk assessments can also prepare leaders for potential disruptions and allow for strategic adjustments as needed.
Safety is paramount in hydrogen production, and companies must ensure that safety practices are not only implemented but also strictly followed at all stages of production. A commitment to safety protects employees and enhances the reliability and sustainability of hydrogen projects.
Implementing a safety culture requires ongoing training and adopting best practices from industries with similar risk profiles, such as oil and gas. Regular safety audits and drills can help maintain high safety standards and prepare the workforce for emergencies.
As the hydrogen industry evolves, finding the right talent becomes strategically imperative. Many potential candidates may come from traditional energy and chemical industries—sectors undergoing significant change and needing green hydrogen to meet CO2 emission reduction targets. Transitioning from fossil fuels to green energy is challenging, but identifying and nurturing the most promising leadership candidates can bring valuable additions to the hydrogen sector workforce.
Implementing targeted recruitment strategies, internal training, and offering robust reskilling programs can help transition skilled professionals from traditional industrial and energy sectors to the hydrogen industry. Participating in industry forums and networks can also identify talents with the expertise and mindset needed to succeed in this dynamic field.
For those working with industrial infrastructure projects, engineering firms, contractors, clients, developers, subcontractors, solution sellers, project managers, and other professionals, there will be ample job opportunities and new possibilities in hydrogen projects.
The hydrogen industry offers immense potential for a clean energy future, but its success depends on effective leadership. By developing a comprehensive skill set, including strategic workforce development, prioritising safety, managing partnerships and negotiations, public influence, time management, vision and innovation, inclusive leadership, and adaptability, industry companies can navigate the complexities of the hydrogen sector and foster its growth. With the right leadership, the hydrogen revolution can achieve its full potential and contribute to a sustainable and prosperous energy future.