Meeting Future Hydrogen Demand: Insights from ICS Report
Key Ideas
  • The International Chamber of Shipping (ICS) report highlights the need for 411 new hydrogen vessels to meet the global demand for green hydrogen, estimated at 30 million tonnes annually.
  • Hydrogen demand is projected to double by 2040, with industrial sectors being the main contributors, emphasizing the importance of infrastructure and regulatory support.
  • Europe, particularly South Korea, Japan, and the EU, are identified as key markets driving hydrogen demand, with the EU targeting 20 million tonnes of hydrogen per year by 2030.
  • The development of port infrastructure and the establishment of clean energy marine hubs are crucial for facilitating the transportation of hydrogen and its derivatives in the maritime sector.
A report published by the International Chamber of Shipping (ICS) emphasizes the significant need for 411 new hydrogen vessels to cater to the global demand for green hydrogen, estimated at 30 million tonnes annually. Written by Stefan Ulreich from Biberach University of Applied Sciences in Germany, the report delves into the sectors driving hydrogen demand and the timeline for adoption. The report underscores the role of clean hydrogen as an energy carrier to decarbonize challenging sectors such as shipping. It emphasizes the necessity of expanding the shipping fleet to transport hydrogen globally, with a potential requirement of up to 411 new hydrogen vessels for long distances or up to 500 vessels if transported as ammonia. Hydrogen demand is expected to witness substantial growth by 2040, driven mainly by industrial sectors that find it easier to integrate hydrogen. To achieve net-zero emissions by 2050, global hydrogen demand must increase fivefold, reaching nearly 500 million tonnes between 2030 and 2050. The report outlines the importance of scaling renewable electricity demand for green hydrogen production and the need for infrastructure development and supportive policies to enable new sectors to adopt green hydrogen. It also highlights the significance of emission abatement targets as the primary driver for hydrogen demand across various sectors. In terms of markets, the report identifies South Korea, Japan, and the EU as key economies propelling hydrogen demand, with Europe aiming for 20 million tonnes of hydrogen annually by 2030. The EU has initiated efforts to support the hydrogen market through regulatory frameworks, pilot mechanisms, and defining renewable and low-carbon hydrogen standards. For the maritime sector, the development of port infrastructure and clean energy marine hubs is crucial to facilitate hydrogen transportation. The report concludes that industry will be a major consumer of hydrogen, with shipping playing a pivotal role as an enabler in the hydrogen economy.
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