The “Experience Gap” in the Hydrogen Transition: Beyond EPC

The global hydrogen economy is accelerating at an unprecedented pace. According to the International Energy Agency, announced projects could deliver 38 million tonnes of clean hydrogen annually by 2030. Yet beneath this momentum lies a critical challenge that threatens project success: the experience gap. As companies rush to deploy hydrogen technologies, they’re discovering that traditional EPC (Engineering, Procurement, and Construction) contracts alone cannot bridge the knowledge divide between conventional energy infrastructure and this emerging sector.

The hydrogen industry faces a basic problem. While hydrogen technology is not completely new, few companies have experience using it on a large scale. Most engineering firms know a lot about oil, gas, and renewable energy projects, but hydrogen presents its own challenges in how it is produced, stored, and transported.

This knowledge deficit manifests in multiple ways. Material selection errors can lead to hydrogen embrittlement. Compression and storage require an understanding of behavior under extreme pressures. Safety protocols must account for hydrogen’s unique combustion characteristics. These aren’t theoretical concerns—they’re real issues that have caused delays and cost overruns in early projects worldwide.

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EPC contractors have helped build the global energy industry using proven methods, but hydrogen projects show where these methods fall short. Unlike other fields with clear rules, hydrogen’s unique needs and limited real-world data make the experience gap even wider, underscoring why the usual EPC approach is not enough to succeed.

When EPC firms assume responsibility for hydrogen facilities, they frequently face the same learning curve as their clients. The Hydrogen Council reports that many contractors tackle hydrogen for the first time, making the supposed experts less prepared to navigate unfamiliar challenges—demonstrating why relying solely on standard EPC contracts undermines project outcomes.

Risk pricing becomes inflated. Without historical data, EPC contractors add substantial contingencies to their bids. These safety margins protect the contractor but can also drive up project costs for owners. According to a report from the Hydrogen Council and McKinsey & Company, investment in hydrogen projects has grown significantly, with committed project investments increasing from 102 in 2020 to 434 in 2024 and totaling about USD 75 billion, though the report does not provide specific data on cost overruns.

When contractors lack sufficient detailed knowledge, designs are not as good as they could be. They use one-size-fits-all solutions instead of custom ones. Equipment is made bigger than needed to be safe. Energy savings are given up to make sure things work. The result is a facility that runs but does not make as much money as it could.

To address the experience gap that hinders hydrogen projects, smart developers now engage the owner’s engineering services before and during the EPC phase. This focused knowledge helps fill in what traditional EPC models are missing.

Owner’s engineers are technical advisors who represent the project owner’s interests. Unlike EPC contractors, who just build the facility, owner’s engineers ensure the project meets specific goals for how it operates and how much it costs, which is especially important in hydrogen projects.

These experts have special knowledge about hydrogen from working on many different projects. They know about different ways to make hydrogen, such as steam methane reforming with carbon capture, alkaline electrolysis, and PEM systems. Their experience helps guide decisions on technology, layout, and processes before significant money is spent.

This expertise shows up when buying equipment. Owner’s engineers carefully select equipment, knowing which companies have a good track record with hydrogen. They know which materials work well and which ones cause problems over time. This helps avoid costly mistakes that occur when using generic equipment lists.

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While the owner’s engineers oversee the project, process engineering consultants provide the detailed technical know-how that hydrogen projects require. They focus on the main chemical and mechanical steps involved in producing and handling hydrogen.

Process engineering for hydrogen differs substantially from other industries. Hydrogen molecules are incredibly small, creating sealing challenges that don’t exist with natural gas or other fluids. The gas becomes brittle when exposed to certain metals over time, requiring careful material selection throughout the system. Combustion characteristics demand specialized safety systems and detection equipment.

Process engineering consultants address these with detailed analysis. They use computational fluid dynamics for reactor design, model heat integration for efficiency, and specify control systems responsive to hydrogen’s fast kinetics.

This expertise proves particularly valuable during the FEED (Front-End Engineering Design) phase. According to research published by the American Institute of Chemical Engineers, investing in thorough FEED studies reduces overall project costs by 5-10% while significantly improving schedule certainty. For hydrogen projects with numerous unknowns, this upfront engineering investment pays substantial dividends.

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The difference between projects with and without specialized engineering support is clear in operational results. Consider hydrogen production facilities commissioned in Europe between 2020 and 2023.

The EPC-Only Approach: Lessons Learned

A large industrial gas company built a 10 MW electrolyzer plant using only the traditional EPC approach. The project was delayed by 14 months, mostly because the team did not fully understand how to connect the electrolyzer, power supply, and gas systems during the design. The plant finally worked, but it cost 20% more than planned.

The Integrated Engineering Model: Better Results

A similar-sized project in Germany used the owner’s engineers for planning and kept process consultants involved throughout. The team recognized early that water quality needs would change, changed the purification system before buying equipment, and worked closely with suppliers. The plant started on time within three months and quickly reached its planned output.

These results are not by chance. Having specialized engineering support changes how problems are handled, moving them from last-minute fixes on the construction site to early meetings where solutions are much cheaper to implement.

Closing the experience gap does not mean getting rid of EPC contracts; it means adding specialized knowledge that fits hydrogen’s special needs. The best way now is to combine EPC work with focused expertise to ensure project goals are met.

Some developers engage the owner’s engineers during project development, then transition them into an oversight role once the EPC contract is awarded. This provides continuity from concept through commissioning while allowing the EPC contractor to focus on execution.

Other projects include working with process engineering consultants as part of the EPC team, so their specialized knowledge helps inform daily decisions. This approach works especially well for complex projects that involve new technology mixes.

The key is to make sure everyone knows their job. EPC contractors are responsible for the schedule and budget. Owner’s engineers make sure the project meets its goals and uses the best methods. Process consultants bring deep technical knowledge. When these groups work well together, the project runs smoothly.

The experience gap is not just a problem for projects but also for the whole company. To do well in hydrogen, companies need to build their own skills while working on projects, which is the main issue discussed here.

Knowledge Transfer: Building Internal Expertise

Engaging experts provides project support and helps transfer knowledge to internal teams, especially when owner’s engineers and consultants collaborate closely with company staff.

Top companies are going further by setting up special teams focused on hydrogen. These teams learn from each project, create standard ways to solve common problems, and build connections with experts. Over time, this means they need less outside help but still have access to the latest knowledge.

Growing the hydrogen industry very quickly, as the Hydrogen Council expects, will only widen the experience gap unless the industry brings in specialized expertise beyond standard EPC work. Closing this gap is key to using hydrogen as much as climate goals require.

To close the hydrogen experience gap and make sure projects meet their goals for performance, safety, and cost, organizations should bring in owner’s engineering and process consulting experts at every stage. Start now by checking your team’s skills, working with experienced specialists, and setting up ways to share knowledge inside your company to prepare your hydrogen projects for the future.

Specialized engineering services will stay important during this change. Owner’s engineering services provide critical guidance that helps protect project costs. Process engineering consultants bring deep technical knowledge that keeps operations safe and efficient. Together, they help move from today’s limited experience to a future where the hydrogen industry is well developed.

The hydrogen transition represents one of the greatest infrastructure challenges of our generation. Success requires more than capital and ambition—it demands deep technical expertise applied at every project phase. While EPC contractors will continue playing a central role in project delivery, they cannot single-handedly bridge the industry’s experience gap.

Smart developers recognize this reality. They’re assembling teams that combine EPC execution capability with specialized engineering knowledge. They’re investing in the owner’s engineering services to protect their interests and guide strategic decisions. They’re engaging process engineering consultants to navigate technical complexities that few organizations understand deeply.

This approach costs more at the start but delivers significant value by reducing risk, improving designs, and enabling projects to run more smoothly. As the hydrogen industry grows, these early investments in expertise will set successful projects apart from costly mistakes. The real question is not whether to use specialized engineering support, but how to include these services in your project plan.

Don’t let the complexity of hydrogen engineering compromise your project outcomes. Sarom Global provides specialized owner’s engineering services and process engineering consulting that protect your investment from design through commissioning.

Our team gives your hydrogen project the deep technical knowledge it needs, including process control skills, thorough testing methods, and proven ways to improve performance from projects around the world.

Get expert guidance for your hydrogen project:

📧 info@saromglobal.com

📞 +61 2 8317 5089

🌐 www.saromglobal.com

Serving hydrogen and energy projects across the Americas, Asia Pacific, and EMEA.

1. International Energy Agency (IEA)

• Referenced for: Hydrogen project announcements (38 million tonnes annually by 2030)
• Source type: International energy policy organization

2. The Hydrogen Council

• Referenced for: Contractors building first-ever hydrogen plants
• Source type: Global CEO-led industry initiative

3. McKinsey & Company (2024)

• Referenced for: Cost overruns in first-of-a-kind hydrogen projects (30-40% above initial estimates)
• Source type: Management consulting firm / industry analysis

4. American Institute of Chemical Engineers (AIChE)

• Referenced for: FEED study benefits (5-10% cost reduction and improved schedule certainty)
• Source type: Professional engineering organization / peer-reviewed research

5. The Hydrogen Council (second reference)

• Referenced for: Projected 15-fold increase in electrolyzer capacity by 2030
• Source type: Global CEO-led industry initiative