Unleashing the Full Potential of Industrial Clusters: Infrastructure Solutions for Clean Energies

The report argues that industrial clusters—geographic hubs of co-located firms—are essential for scaling clean energy infrastructure by aggregating demand, sharing risks, and achieving economies of scale. It identifies key challenges, including the 'green premium' (higher costs of clean fuels compared to fossil fuels) and a lack of cohesive global standards. To address these, the document proposes three solution areas: developing a common vision through robust governance and digital cores, expediting the scaling of initiatives via aggregated demand and new business models, and strengthening collaboration across regions through global networks and maritime corridors.

• Hard-to-abate industrial and transport sectors (aviation, shipping, and trucking) are responsible for nearly 40% of global Scope 1 and 2 greenhouse gas emissions.
• The 'green premium' significantly hinders investment, with green hydrogen production costs currently 1.5 to 6 times higher than fossil-fuel-based hydrogen, and green ammonia costs nearly three times higher as of 2023.
• Clean hydrogen production requires a compound annual growth rate (CAGR) of over 90% from 2024 to 2030 for the full project pipeline to materialize, yet progress on export-oriented projects has been negligible.
• Global certification for hydrogen and its derivatives is fragmented, with 34 different certification schemes existing globally, which complicates international trade.
• Digital twins and AI can optimize infrastructure planning; for example, Zero Carbon Humber is using a digital twin of hydrogen infrastructure to model decarbonization pathways and market evolution.
• Aggregating demand within clusters can de-risk investments; the Tranzero Initiative in Gothenburg has established 14 charging stations for electric trucks by creating a unified demand signal.
• Vertical integration can reduce the cost of clean fuels, as demonstrated by the Mundra cluster in India, which manages the entire supply chain from renewable energy equipment to green hydrogen production.
• International maritime corridors are emerging to connect low-cost production hubs with high-demand centers, such as the corridor linking the Andalusian Green Hydrogen Valley in Spain to the Port of Rotterdam.

APA

World Economic Forum (2025). Unleashing the Full Potential of Industrial Clusters: Infrastructure Solutions for Clean Energies. https://reports.weforum.org/docs/WEF_Unleashing_the_Potential_of_Industrial_Clusters_2025.pdf

Chicago

World Economic Forum. Unleashing the Full Potential of Industrial Clusters: Infrastructure Solutions for Clean Energies. 2025. https://reports.weforum.org/docs/WEF_Unleashing_the_Potential_of_Industrial_Clusters_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Unleashing the Full Potential of Industrial Clusters: Infrastructure Solutions for Clean Energies |date=January 2025 |url=https://reports.weforum.org/docs/WEF_Unleashing_the_Potential_of_Industrial_Clusters_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025unleashing, author = {{World Economic Forum}}, title = {{Unleashing the Full Potential of Industrial Clusters: Infrastructure Solutions for Clean Energies}}, institution = {World Economic Forum}, year = {2025}, month = jan, url = {https://reports.weforum.org/docs/WEF_Unleashing_the_Potential_of_Industrial_Clusters_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }