Hydrogen Revolution in Electricity Generation by 2025
Key Ideas
- US set to lead in blue hydrogen production by 2025.
- Chinese-made electrolysers to boost global competition and investments in synfuels.
- Wood Mackenzie emphasizes the importance of aligning FIDs and offtake contracts for hydrogen scaling.
- 2025 expected to see significant growth in ammonia production due to hydrogen advancements.
In 2025, hydrogen is projected to play a pivotal role in transforming electricity generation, with the US taking the lead in blue hydrogen production. Wood Mackenzie's forecast indicates that Chinese-manufactured electrolysers will drive competition internationally, particularly in ammonia and other synthetic fuels. To maximize the potential of hydrogen for power generation, it is essential to address the discrepancy between Final Investment Decisions (FIDs) and offtake agreements. This alignment will be critical for scaling up hydrogen usage. Furthermore, the anticipated advancements in hydrogen technology by 2025 are expected to lead to a surge in ammonia production, showcasing the diverse applications and benefits of hydrogen in various sectors.