Unprecedented Opportunities: Driving Future Hydrogen Demand in Shipping
Key Ideas
- The International Chamber of Shipping (ICS) report identifies hydrogen's potential as an energy carrier and feedstock in decarbonising hard to abate sectors.
- Europe, South Korea, and Japan are expected to be key markets driving hydrogen demand, with Europe aiming for 20 million tonnes of hydrogen per year by 2030.
- The report emphasizes the need for a significant increase in the fleet to transport hydrogen by ship to meet the global increase in hydrogen trade, estimating the need for up to 411 new hydrogen vessels.
- Renewable electricity demand for green hydrogen production is highlighted as unprecedented, presenting both opportunities and challenges in transitioning to zero-emission fuels in industrial sectors.
The International Chamber of Shipping (ICS) has released a comprehensive report focusing on the potential of hydrogen as an energy carrier and feedstock to reduce emissions in various industrial sectors, particularly those hard to decarbonise. The report titled 'Turning hydrogen demand into reality: Which sectors come first?' highlights the critical role of clean hydrogen in decarbonisation efforts and discusses the demand dynamics of zero-emission fuels. Europe, South Korea, and Japan are identified as primary markets driving hydrogen demand, with Europe setting ambitious targets for hydrogen production by 2030. The report underlines the need for a substantial increase in the fleet to transport hydrogen by ship to meet the growing global demand, estimating the requirement of hundreds of new hydrogen vessels. Additionally, the report stresses the unprecedented scale of renewable electricity needed for green hydrogen production, indicating both significant opportunities and challenges in shifting towards zero-emission fuels in industrial sectors.