Concord® CEO Olfa Hamdi explains why hydrogen construction projects are perpetually late and over-budget — and how to fix it
Concord® is an established global leader in capital project construction and delivery, and we have recently accelerated our strategic investment in the hydrogen construction sector. The reason for this expansion is simple: Through our groundbreaking collaboration with Air Products, the global leader in hydrogen supply, we discovered an industry that demands reliable project outcomes. This insight led us to further develop Concord® hydrogen-focused services.
Air Products, established in the 1940s, operates across 50 countries with a market capitalization of $65 billion. The company has shifted its focus to developing large-scale clean hydrogen projects. Our work with Air Products has involved implementing established project management approaches, including Advanced Work Packaging (AWP), to help deliver capital projects efficiently and predictably. As the hydrogen construction sector continues to evolve, it faces distinct challenges that warrant discussion and innovative solutions to accelerate project delivery. The exploration of proven project delivery practices such as AWP and Predictability Thinking® for the application on hydrogen construction projects is needed.
What is Advanced Work Packaging?
Advanced Work Packaging (AWP) is a construction-driven planning and collaboration system for building capital projects. It is also a system that mitigates project definition and execution risks from early development phases to mechanical completion. Construction-driven means that from start to finish, all stakeholders are singularly focused on ensuring that field crews have the instructions, equipment, and materials they need to complete their work safely and efficiently. This alignment between planning, engineering, procurement, and construction teams increases labor productivity and improves project outcomes, supporting on-time, on-budget project delivery. For these reasons, AWP is considered a best practice in the field of capital construction.
Hydrogen Construction Acceleration
The hydrogen sector is experiencing a global boom, driven in large measure by governments’ decarbonization goals and energy security concerns. Catalyzed by this exponential growth, hydrogen construction companies have been willing to pay more to accelerate construction and secure the first-mover advantage. This effectively made most hydrogen construction projects fast-tracked projects. Yet despite these significant financial incentives as well as clear imperative for fast project delivery, we see delays and cost overruns threatening the fundamental business case for many hydrogen construction projects. Why?
While various explanations point to supply chain issues, technological challenges and regulatory hurdles, one of the most fundamental root causes is that many hydrogen construction companies lack sufficient capital project delivery and construction experience. Even mature capital project construction companies find it challenging to achieve on-time, on-budget delivery, and this challenge intensifies with fast-tracked projects. Companies new to capital project construction are bound to struggle, and it’s clear to us that delays and cost overruns in the hydrogen construction sector stem in part from the lack of proven project delivery management systems, expertise, and risk mitigation capabilities.
As we expand our work in the hydrogen sector, we are developing specialized training programs to assist in hydrogen construction acceleration. Here are the key bottlenecks we have identified in this growing industry, and our proposed solutions:
1. Regulatory Landscape Complexity
Permitting and regulatory compliance vary dramatically from country to country and market to market, further complicated by political issues ranging from general instability to changes of government. In petrochemical projects, we treat regulations and permits as a risk that needs ongoing, professional management. In the hydrogen sector, these risks are generally underestimated.
Construction companies entering the hydrogen space should establish dedicated regulatory compliance teams early in the project lifecycle, with expertise specific to each jurisdiction. These teams should work alongside project planners from day one to integrate compliance timelines into the master schedule, preventing costly delays and ensuring smooth project execution. Permits need to be considered as hard constraints to Project Development incorporated into the development of a project Path of Execution and Path of Construction (POC).
2. Integrating with Existing Infrastructure Complexity
From pipelines to power grids, most major hydrogen construction projects need to be integrated with existing national, state, or regional energy infrastructure. This integration is effectively a project in and of itself, and one that can introduce numerous challenges, costs, and risks. Many hydrogen projects fail to properly scope and plan for these integrations, and Owners are later surprised by unanticipated costs and delays.
Project teams should conduct comprehensive infrastructure integration studies during the early planning phase, bringing together specialists from both hydrogen and traditional energy sectors to identify potential conflicts and compatibility issues. We recommend developing a detailed integration management plan as part of the project’s Path of Construction (POC) that includes thorough stakeholder mapping, technical interface analysis, and contingency planning for infrastructure modifications well before construction begins.
3. Front-End Loading (FEL) and Project Development Complexity
The baseline complexity of capital project development is often underestimated, particularly the front-end definition phase — FEL 1, 2, and 3. From business case and estimating to development and engineering, this early-stage conceptual work is absolutely critical to the success of your project. Many hydrogen project developers — especially those operating within new project development organizations — have limited experience with this process and take uninformed risks, leading to highly unpredictable outcomes.
If your goal is hydrogen construction acceleration, we strongly recommend implementing Advanced Work Packaging (AWP) principles from the earliest stages of front-end planning, using Construction-Driven Planning to inform engineering priorities and decisions. By breaking down the project scope into well-defined work areas and work packages during FEL 2 and 3, teams can better identify potential risks, optimize their execution strategy, and establish the foundation for predictable project outcomes.
4. Addressing the Skills Gap
We are facing a severe shortage of skilled capital project development experts. Research in this area is limited, but the data we do have on the hydrogen workforce gap is striking: for example, by 2030, we will need approximately 120,000 process engineers globally, while we currently have just 40,000. The gap extends across all roles, from safety engineers and technicians to project managers, planners and construction workers.
This skills gap makes standardized, high-quality training essential for maintaining safety and efficiency in hydrogen projects. To address this need, we have developed the Concord Academy, an ISO 9001-certified professional training academy that focuses on developing comprehensive project management capabilities across all roles. The program combines established industry best practices with specific hydrogen sector requirements, ensuring teams have the specialized knowledge needed for these complex projects.
Training the Next Generation of Hydrogen Project Leaders
Drawing from our experience helping major hydrogen companies adopt Advanced Work Packaging (AWP), we’ve identified a clear path to scaling these best practices across the sector. We’re developing specialized project delivery and AWP courses for hydrogen projects, combining proven methodologies with sector-specific requirements. Our goal is to equip professionals with the trusted knowledge and skills they need to accelerate project delivery and deliver predictable outcomes in this rapidly growing market.
Concord® is uniquely positioned to support hydrogen construction companies in their efforts to deliver projects on-time and on-budget. With deep expertise in capital project construction and delivery, we believe we can support hydrogen construction acceleration through training and consulting that accelerated hydrogen construction projects. If you’re interested in learning more about how Concord can help, contact us today!
We Are Experts in On-Time, On-Budget Capital Project Delivery
Concord® has worked with some of the biggest names in capital construction, including ExxonMobil, RioTinto and Petronas. We offer a robust suite of training and consulting services to companies looking to implement a construction-driven approach to capital projects, including Advanced Work Packaging and Predictability Thinking®. These methodologies integrate planning, engineering, procurement and construction to develop and deliver capital projects on-time and on-budget. They are tried-and-true best practices and we believe they can offer immense benefits to the hydrogen construction sector.
