Global Hydrogen Revolution: Doubling of Low-Emissions Projects Set to Increase Production Fivefold by 2030
Key Ideas
- Number of projects for low-emissions hydrogen reaching final investment decision has doubled, aiming to increase global production by fivefold by 2030.
- Current electrolyzer capacity at 20 gigawatts globally, with potential to reach nearly 50 million tonnes of production annually by 2030.
- Report emphasizes gap between government production and demand targets, highlighting the need to create demand and reduce costs for the sector to thrive.
- IEA executive director notes strong investor confidence in hydrogen's potential to decarbonize industries, signaling the importance of supporting demand creation and clear regulations.
The International Energy Agency's Global Hydrogen Review 2024 reveals a significant surge in low-emissions hydrogen projects, with the number of projects reaching final investment decisions doubling in the past year. This growth trend positions global production to escalate by fivefold by 2030, reaching a potential of nearly 50 million tonnes annually. Despite challenges like regulatory uncertainties and cost pressures, the report showcases a positive trajectory for the hydrogen sector.
The report underlines the importance of accelerating demand creation to align with ambitious government production targets. Currently, there is a substantial gap between the projected production capacity and estimated demand by 2030. Key findings highlight China's dominant role in the sector, accounting for over 40% of the 6 GW of electrolyzer capacity that reached final investment decisions recently.
IEA's executive director emphasizes the necessity of addressing challenges in the hydrogen sector to ensure its success. Strong investor confidence is evident, particularly in hydrogen's capacity to decarbonize industries such as steel and refining. To support the growth of low-emissions hydrogen, policymakers and developers are urged to focus on establishing clear regulatory frameworks, reducing costs, and stimulating demand. The report underscores the critical role of enabling tools to bolster demand creation and ensure sustained investment in the sector, paving the way for a cleaner and more sustainable energy future.
Topics
Projects
Investment
Energy
Industry Decarbonization
Global Production
Electrolyzer Capacity
Regulatory Challenges
Government Targets
Demand Creation
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