Global Hydrogen Review 2024: Growth Predicted in Low-Carbon Hydrogen Production
Key Ideas
- IEA forecasts a significant growth in low-carbon hydrogen production by 2030, reaching 49 million tons annually.
- China leads in electrolyzer production, concentrating 60% of capacities, with 25 GW per year.
- While low-carbon hydrogen remains costly, costs are expected to decrease notably in the near future.
- By 2030, 'green' hydrogen is projected to cost $2-9 per kg, becoming competitive with fossil fuel-derived hydrogen.
The International Energy Agency (IEA) has published its Global Hydrogen Review 2024, indicating a modest volume of 'low-carbon' hydrogen production and consumption in 2023, amounting to less than 1 million tons amidst a 97 million tons global hydrogen consumption. The IEA's latest forecast suggests a substantial surge in low-emission hydrogen production by 2030, possibly hitting 49 million tons annually, marking a 30% increase from the previous year's prediction. This growth is attributed to the proliferation of electrolysis projects, totaling 520 GW, with China standing out by holding 60% of the global electrolyzer production capacities at 25 GW per year. Although low-carbon hydrogen currently carries a high price tag, the IEA anticipates a significant cost reduction in the coming years. By 2030, the production cost of 'green' hydrogen is projected to range from $2 to $9 per kg, enabling the production of 5 million tons at a cost comparable to fossil fuel-based hydrogen, signaling a positive trend towards a more competitive and sustainable hydrogen economy.