Global Hydrogen Review 2024: Accelerating Investment and Projects in Low-Emissions Hydrogen
Key Ideas
  • The International Energy Agency's report highlights a significant increase in investment and projects in low-emissions hydrogen, with the number of projects doubling in the last 12 months.
  • If all announced projects are realized, global production of low-emissions hydrogen could reach almost 50 million tonnes a year by 2030, requiring a high growth rate for the sector.
  • Government policies to stimulate demand, reduce costs, and ensure clear regulations are crucial for the success of low-emissions hydrogen projects in sectors like steel, refining, and chemicals.
  • Despite progress and government initiatives, the hydrogen sector still faces challenges related to technology, production costs, and meeting climate goals, emphasizing the need for continuous advancements.
The International Energy Agency's Global Hydrogen Review 2024 report emphasizes the growing momentum in investment and projects related to low-emissions hydrogen. The report indicates that the number of projects reaching final investment decision has doubled in the past year, with the potential to increase global production fivefold by 2030. However, challenges such as regulatory uncertainties, cost pressures, and lack of demand incentives persist in the sector. The report outlines the need for policies to stimulate demand in key sectors like heavy industry, refining, and long-distance transport to expedite the deployment of low-emissions hydrogen. Despite new project announcements, installed capacity for electrolysers remains low due to awaiting government support and regulatory clarity. The gap between government production and demand targets for low-emissions hydrogen by 2030 is highlighted, underscoring the importance of aligning policies to drive growth in the sector. While some government initiatives like carbon contracts and sustainable fuel quotas have triggered action, more support is needed to meet climate goals. Challenges related to technology advancements, production costs, and achieving economies of scale through mass manufacturing are outlined in the report. The potential for industrial hubs to replace existing hydrogen production from fossil fuels presents an untapped opportunity for governments to accelerate demand for low-emissions hydrogen. Overall, the report emphasizes the critical role of government policies, technology development, and demand stimulation in advancing the low-emissions hydrogen sector to contribute significantly to emissions reduction in industries.
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