Green Hydrogen: Paving the Way to Net-Zero Success
Key Ideas
- Clean hydrogen, especially green hydrogen, is gaining traction as a vital component in decarbonizing hard-to-abate sectors like cement and aviation fuel production.
- Deloitte's research forecasts a substantial growth in the green hydrogen market, potentially reaching 600 billion euros in annual revenue by 2030, creating up to 2 million jobs per year globally.
- The development of a robust regulatory framework and supportive policies is crucial to scaling the green hydrogen economy and ensuring its pivotal role in achieving climate neutrality.
- To enable the clean hydrogen market's growth, demand activation, low-cost supply, stable policies, and collaboration are essential focus areas supported by Deloitte's expertise.
The energy transition towards sustainability is rapidly progressing, with a significant spotlight on clean hydrogen, particularly green hydrogen, as a crucial element in achieving global climate goals. Green hydrogen, produced through electrolysis using renewable energy sources, is positioned as an effective solution for sectors where direct electrification faces limitations. Notably, it stands out in decarbonizing industries with high carbon footprints like cement and sustainable aviation fuel production, offering stability to energy grids during renewable source downtimes.
The EU's sustainability criteria for green hydrogen emphasize the necessity of additional renewable energy capacity and a minimum 70% reduction in greenhouse gas emissions compared to fossil-based hydrogen. Deloitte's economic analysis projects a substantial growth trajectory for the green hydrogen market, foreseeing an annual revenue of 600 billion euros by 2030 and significant job creation opportunities globally.
Moreover, the report highlights the role of global trade in hydrogen derivatives like ammonia and methanol, potentially generating 260 billion euros annually by 2050. Regions like the Middle East, North Africa, and Australia are poised to become key players in the global hydrogen market, with substantial investments required to achieve net-zero goals.
Policy support and a robust regulatory framework are deemed essential for scaling the green hydrogen economy. Deloitte emphasizes the need for decisive policy measures to drive market growth and ensure hydrogen's pivotal role in climate neutrality. The firm's expertise aims to bridge the gap between green and fossil-based technologies, simplify supply chains, and foster international cooperation to accelerate the clean hydrogen market's development.
Deloitte's approach focuses on advising clients on feasibility studies and business model innovation, implementing collaborative ecosystems, and supporting the execution of clean hydrogen projects. By addressing complex challenges and promoting collaboration, Deloitte aims to facilitate the widespread adoption of clean hydrogen and drive large-scale decarbonization efforts.
Topics
Production
Renewable Energy
Energy Transition
Clean Technology
Market Potential
Climate Goals
Economic Analysis
Global Trade
Policy Support
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