The Rise of Low-Carbon Hydrogen: Opportunities, Regulations, and Growth Ahead
Key Ideas
  • Low-carbon hydrogen projects are doubling, showing a growing commitment to sustainable fuels with a projected cost decrease by 2030.
  • EU introduces draft regulations for low-carbon hydrogen certification, aligning with existing renewable energy directives and aiming for transparency.
  • Certification schemes become crucial to assure sustainability and mitigate risks in the global hydrogen market, with varying emission thresholds across regions.
  • Anticipated exponential growth in low-emission hydrogen production by 2030, requiring significant government support to drive demand and overcome challenges.
Green and low-carbon hydrogen are emerging as crucial players in the transition to sustainable energy. As the world seeks to meet rising energy demands while addressing climate change, hydrogen offers a promising alternative to fossil fuels. Low-carbon hydrogen, produced using renewable electricity, shows significant promise in meeting global energy demand and climate action goals. While currently more expensive than fossil fuels, the number of low-emissions hydrogen projects doubled in 2024, indicating a growing commitment to sustainable fuels. The EU's draft methodology for low-carbon hydrogen aims to evaluate emission savings and aligns with existing directives. Certification schemes are crucial for ensuring sustainability in the global hydrogen market. With anticipated growth in low-emission hydrogen production by 2030, government support is crucial to drive demand and overcome challenges.
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