Insights from the latest LAMA event: Hydrogen and its growing role in the decarbonisation journey.

Hydrogen, Electrification and the Future of Asset Risk

On a sunny Thursday in March, the Hickman Shearer team and members of The Leasing Asset Managers Association gathered for this years conference at the Birmingham Energy Innovation Centre, part of Tyseley Energy Park.

Bringing together professionals across asset valuation, leasing and credit risk, the session focused on a critical and fast-evolving topic: the role of hydrogen in the decarbonisation journey, and what this means for asset-heavy sectors.

Beyond Electrification: Hydrogen’s Emerging Role

While electrification continues to dominate the decarbonisation narrative, a key takeaway from the day was clear: hydrogen is set to play a significant and long-term role, particularly in sectors where battery solutions alone may not be viable.

Applications such as heavy-duty transport, industrial processes and energy-intensive operations are increasingly being positioned as strong use cases for hydrogen. This has important implications for asset lifecycles, residual values and long-term investment strategies.

For asset managers and valuers, this shift introduces both opportunity and complexity, requiring a broader understanding of emerging technologies and their commercial viability.

Research, Innovation and Real-World Application

Experts from the University of Birmingham provided valuable insight into the research and development driving hydrogen forward, highlighting both the pace of innovation and the challenges that remain in scaling infrastructure and adoption.

The discussion reinforced that while hydrogen is not a short-term replacement for electrification, it is a critical complementary solution, particularly as industries look to meet increasingly stringent emissions targets.

Commercial Vehicles and Regulatory Pressure

The keynote session from Tim Campbell of Campbells Consultancy, explored how commercial vehicle fleets are responding to upcoming EU zero-emission mandates.

With regulatory pressure building, operators are actively assessing a mix of technologies to futureproof their fleets. Questions remain around infrastructure readiness, total cost of ownership and whether key deadlines, including the 2040 phase-out targets, may evolve over time.

For those involved in asset-backed lending and valuation, these uncertainties directly impact risk profiling and asset forecasting.

Circular Economy and Infrastructure Development

Further insights were shared by industry innovators working at the forefront of the transition:

• HyProMag Ltd demonstrated how rare earth magnets can be recovered from end-of-life assets, supporting circular economy models and reducing reliance on primary materials

• Ryze Power outlined the development of green hydrogen refuelling infrastructure, a critical enabler for wider adoption

These developments highlight the interconnected nature of the transition where technology, infrastructure and resource recovery must evolve in parallel.

Why This Matters for Asset Valuation and Risk

For professionals across asset valuation, leasing and credit risk, the implications are significant.

The transition to low- and zero-emission technologies will directly influence:

• Asset obsolescence timelines

• Residual value assumptions

• Secondary market demand

• Investment and lending decisions

Understanding not just what technologies are emerging, but how and when they will be adopted, is becoming essential to managing risk effectively.

Looking Ahead

The shift towards decarbonisation is accelerating, but it is not linear. As highlighted throughout the event, hydrogen will play a key role alongside electrification, not as a replacement, but as part of a broader, more complex energy ecosystem.

For the asset finance community, staying informed and engaged with these developments is critical and events such as the LAMA conference reinforce the importance of collaboration between industry, academia and technology providers in navigating the transition ahead.

About The Leasing Asset Managers Association (LAMA)
Founded by Hickman Shearer, the Leasing Asset Managers Association is a professional body supporting asset managers and advisors across leasing and asset finance industries through formal and informal events throughout the year to ensure growth of the industry and peer collaboration.

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