Hydrogen for a Net-Zero Future: Progress and Prospects (2024 Edition)
Building on our previous work on hydrogen as a source of clean energy that included interviews with Prof. Ric Parker and Prof. Yasushi Sekine, the GFCC hosted an expert session on the Hydrogen Economy exclusive for our community on March 14, 2024. Since our 2021 blog post, “Will hydrogen power a net-zero future?”, advancements in hydrogen energy technologies have solidified its role in the global transition toward clean energy amidst escalating climate concerns. Today, we revisit this subject with some key updates.
Rapid Growth… But Challenges Remain
According to the International Energy Agency (IEA), global hydrogen use is increasing by around 3% year-on-year, which does not reflect policy efforts to expand the use of hydrogen but rather a general global energy trend.
Despite an increase in the production of green hydrogen, which is produced using renewable energy sources like solar and wind to power electrolysis, 98% of the world’s hydrogen production today is still considered grey hydrogen, according to Prof. Ric Parker.
Countries and companies have been scaling up electrolysis capacity in an attempt to drive down costs and achieve cost-competitiveness with conventional grey and blue hydrogen. The IEA estimates that if all announced projects are realized, by 2030, the annual production of low-emission hydrogen could reach 38Mt.
Governments Step Up, with Gaps
CSIRO’s HyResource states that many major global economies have released strategies, roadmaps, or preliminary guidelines that position hydrogen as part of their decarbonization policies. Their website provides an overview of policy documents on hydrogen for 59 different jurisdictions.
Many governments provide financial support, incentives, and regulatory frameworks to accelerate hydrogen production, infrastructure development, and deployment in various sectors. Despite the release of ambitious strategies and commitments to develop a hydrogen economy, the IEA points out that there is a need for targets to increase demand for low-emission hydrogen and more policies to target the industrial application of hydrogen.
Realizing the Hydrogen Economy: Challenges and Solutions
While electrolysis, hydrogen storage, and transportation technologies are progressing, Professor Ric Parker, during our recent expert session, outlined the key challenges to fully realizing the hydrogen economy:
- Infrastructure Gap: Many regions lack the infrastructure for large-scale hydrogen handling and electrolysis plants to replace grey with green hydrogen.
- Lack of Supportive Regulation: Systemic policies that stimulate the production of green hydrogen and the application and demand of hydrogen can improve its affordability and drive market growth.
- Storage Challenges: Hydrogen requires significant space and specialized infrastructure to store safely.
- Distribution Risks: Existing gas networks may not be suitable for hydrogen due to leakage issues.
- Cost Barriers: Adapting infrastructure for hydrogen-powered passenger cars remains expensive and poses distribution safety concerns.
The Path Forward: Collaboration
The GFCC understands that international partnerships are crucial for realizing the hydrogen economy’s potential. Collaborations would enable the sharing of research and development breakthroughs, accelerating innovation. They would also facilitate the creation of global standards and regulations to ensure safety and compatibility. GFCC expert sessions provide a platform for global stakeholders to exchange insights, forge collaborations, and accelerate progress. We can overcome hurdles and drive innovation by pooling knowledge, resources, and expertise across governments, industries, and research institutions.
Global momentum for hydrogen is undeniable, attracting investment from governments, energy companies, automotive giants, and the financial sector. While many challenges remain in fully realizing a hydrogen economy and its net-zero impact, we are optimistic. Influxes of capital, combined with supportive regulatory frameworks, will power innovation, scale production, and pave the way for a more robust hydrogen ecosystem.
