Global Gas Demand Continues to Rise: The Role of Low-CO2 Gas Technologies
Key Ideas
  • Global gas demand increased by 1.5% in 2023 and is projected to rise by a further 2.1% in 2024.
  • Asia's demand growth is fueling global gas imports, while North America and the Middle East lead in supply growth.
  • Shifting from coal to natural gas can immediately cut emissions by around 50%, highlighting the importance of low-CO2 gas technologies.
  • Biomethane, zero- and low-CO2 hydrogen, and CCUS technologies are crucial for reducing emissions and are poised for rapid growth by 2030.
Global gas demand has shown continued growth, with a 1.5% increase in 2023 and a projected 2.1% rise in 2024. This growth is largely driven by Asia's increasing demand, leading to a rise in global gas imports. The supply side is being boosted by exports from North America and the Middle East. While global gas markets have stabilized, concerns about energy security persist. Shifting from coal to natural gas is seen as a cost-effective way to immediately reduce emissions. However, this transition should complement efforts in renewable energy expansion and efficiency improvements. Low-CO2 gas technologies such as biomethane, zero- and low-CO2 hydrogen, and CCUS are highlighted as crucial for emission reduction. These technologies are expected to experience significant growth, with biomethane production concentrated in North America and Europe, and emerging markets in China and India. Zero- and low-CO2 hydrogen production is set to grow rapidly, while CCUS capacity is expected to increase by 42% annually. The current global volume of biomethane and hydrogen remains small, emphasizing the need for further development in these areas.
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