Shaping Sustainable International Hydrogen Value Chains: Opportunities and Challenges Ahead
Key Ideas
  • Global hydrogen demand by 2050 may lead to a quarter of it being traded internationally through retrofitted pipelines and shipping with ammonia as a carrier.
  • Developed nations are incentivized to support renewable hydrogen production in developing countries, emphasizing a comprehensive sustainability approach.
  • IRENA stresses the importance of ensuring the equitable and sustainable development of renewable hydrogen value chains, considering economic, environmental, social, and governance aspects.
  • Hydrogen development in exporting countries should not only focus on production but also drive a broader green energy transition to minimize environmental impacts.
The International Renewable Energy Agency (IRENA) highlights the significance of affordable low-carbon hydrogen as a crucial element in achieving global net-zero emissions by 2050. However, the production and economic potential for hydrogen are not evenly spread worldwide, leading to projections that about 25% of global hydrogen demand will be traded internationally by 2050. IRENA's report emphasizes the emergence of a new international market for low-carbon hydrogen, potentially reshaping global energy trade and offering opportunities for developing countries while also posing sustainability concerns. It suggests that developed nations are inclined to support renewable hydrogen production in developing regions to establish sustainable international value chains. The report underlines the necessity of a comprehensive sustainability approach that goes beyond emissions intensity to encompass economic, environmental, social, and governance factors. Furthermore, it advocates for ensuring that exporting regions benefit economically and socially from hydrogen production, promoting local industrial development and creating sustainable jobs. IRENA also urges exporting countries to drive a broader green transition to mitigate environmental burdens and support renewable energy deployment beyond hydrogen production needs.
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