Navigating Challenges: Accelerating the Global Hydrogen Trade for a Sustainable Future
Key Ideas
  • Current low-carbon hydrogen production faces high costs and limited infrastructure, hindering competitiveness against fossil fuels.
  • Projected shortfall in low-carbon hydrogen production by 2030 highlights the urgent need for accelerated development and deployment.
  • Addressing challenges in marine transport and infrastructure, such as pipeline capacity, is crucial for efficient hydrogen distribution.
  • Strategic actions include technology and infrastructure investments, policy support, international collaboration, scaling up production, and public-private partnerships.
The global push for low-carbon hydrogen as a solution to combat climate change faces challenges in production, trade, and infrastructure. Despite advancements in green and blue hydrogen production, costs and infrastructure limitations hinder competitiveness against traditional fossil fuels. The projected shortfall in low-carbon hydrogen production by 2030 emphasizes the urgent need for accelerated development to meet climate targets. Challenges in marine transport and infrastructure, especially in Europe's hydrogen import pipeline capacity, pose obstacles to efficient distribution. Strategic measures proposed by BCG include investing in technology, policy support, international collaboration, scaling up production, and public-private partnerships. Governments and companies must work together to drive innovation and investment in the hydrogen sector, aiming for a sustainable and resilient hydrogen economy integrated across various sectors. A long-term vision for green hydrogen, reliant on renewable energy, is crucial for the sustainability of the hydrogen economy. Collaborative efforts are deemed essential to overcome challenges and ensure a robust hydrogen economy that supports global climate goals and a low-carbon future.
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