The Rise of Hydrogen in Electricity Generation: US Leads in Blue Hydrogen, China Dominates Electrolysers
Key Ideas
- 2025 predicted to be a transformative year for hydrogen in electricity generation.
- US expected to lead in blue hydrogen production.
- Chinese-manufactured electrolysers to drive global competition and investments in ammonia and synfuels.
- Addressing mismatches between FIDs and offtake contracts crucial for scaling hydrogen in power generation.
The year 2025 is forecasted to be a significant period for hydrogen within electricity generation, with the United States projected to emerge as the primary producer of blue hydrogen. Simultaneously, electrolysers manufactured in China are anticipated to foster global competition and encourage investments in ammonia and other synfuels, as outlined by Wood Mackenzie's predictions. Despite these advancements, it is deemed critical to address the discrepancies between Final Investment Decisions (FIDs) and offtake contracts to effectively scale hydrogen for power generation. This indicates a positive outlook for the role of hydrogen in the energy landscape, with a strong emphasis on enhancing production capabilities and fostering international competitiveness.