Global Hydrogen Review 2024: Challenges and Opportunities for Low-Emissions Hydrogen Growth
Key Ideas
- Global demand for hydrogen increased by 2.5% in 2023, with low emissions hydrogen production remaining marginal but showing potential for growth.
- The sector is poised for significant expansion with announced projects indicating a potential production of 49Mt per year by 2030, but it requires unprecedented growth rates and government support.
- Latin America and the Caribbean are highlighted as regions with potential to become major low-emissions hydrogen producers, but significant investments in infrastructure and electricity generation are needed.
- Recommendations include accelerating demand creation, supporting project developers, strengthening regulations, and expanding low-emissions hydrogen production in emerging markets.
The Global Hydrogen Review 2024 assesses the current status and future prospects of the hydrogen sector. While low emissions hydrogen has seen limited growth, there is potential for significant expansion. The review highlights the challenges faced by the sector, including the concentration of demand in refining and chemicals, primarily met by hydrogen from fossil fuels. However, the increasing number of announced projects indicates a possible surge in low emissions hydrogen production by 2030, though this requires substantial growth rates and government support.
The review emphasizes the importance of creating demand for low emissions hydrogen and the need for policy and regulatory frameworks to support its growth. Latin America and the Caribbean are identified as regions with ideal conditions for becoming major low-emissions hydrogen producers, but achieving this potential requires significant investments in infrastructure and electricity generation.
Furthermore, the review notes the progress in hydrogen technology RD&D, with promising advancements in supply and end-use technologies. It also recommends measures to accelerate the adoption of low emissions hydrogen, such as leveraging industrial hubs, supporting project developers, and enhancing regulation and certification processes.
In conclusion, the Global Hydrogen Review 2024 presents a positive outlook for the future of low emissions hydrogen, emphasizing the need for coordinated efforts from policymakers, investors, and developers to unlock its full potential and contribute to a more sustainable energy landscape.