Global Hydrogen Review 2024: Growth, Challenges, and the Path Forward
Key Ideas
- Global demand for hydrogen reached 97 million tonnes in 2023, with projections of reaching 100 million tonnes in 2024, driven by economic growth rather than supportive policies.
- Hydrogen demand is mainly concentrated in the chemical and refining sectors, with green hydrogen playing a marginal role but showing potential for significant growth by 2030.
- China leads as the world's largest consumer of hydrogen, followed by the United States, with investment and projects in green hydrogen generation increasing globally.
- Despite progress, regulatory uncertainties, cost pressures, and lack of incentives remain challenges, with the need for policies to stimulate demand in key sectors for accelerated deployment.
The International Energy Agency's Global Hydrogen Review 2024 report provides insights into the current state and future projections of the hydrogen sector. Global demand for hydrogen has been on the rise, reaching 97 million tonnes in 2023 and projected to hit 100 million tonnes in 2024. The growth in demand is primarily attributed to economic expansion rather than policy interventions. Most of the demand comes from the chemical and refining sectors, with green hydrogen production, although low in 2023, showing promise for significant growth by 2030, especially through electrolysis-based projects.
The report emphasizes the regional distribution of hydrogen demand, highlighting China as the largest consumer, followed by the United States. While investments and green hydrogen projects are increasing globally, challenges such as regulatory uncertainties, cost pressures, and a lack of incentives hinder the sector's progress. The report underscores the need for policies that stimulate demand in crucial sectors like heavy industry and transport for faster deployment.
The gap between production and demand targets is a notable issue, with governments aiming for 43 million tonnes of production by 2030 while demand targets are significantly lower at 11 million tonnes, necessitating further policies to boost demand for green hydrogen. Despite the positive momentum, the hydrogen sector still faces hurdles in meeting climate targets, calling for focused efforts from policymakers and developers to address challenges and support the sector's growth.
Topics
Policy
Green Hydrogen
Investment
Market Trends
Green Technology
Regulations
Industry Growth
Energy Sector
Global Demand
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