Driving the Future: Heavy Industry Sector to Lead Global Hydrogen Demand by 2050
Key Ideas
- The heavy industry sector is projected to be the primary driver of global hydrogen demand by 2050, particularly in hard-to-abate sectors like road transport, shipping, and aviation.
- To meet the anticipated 30 million tonnes of annual green hydrogen demand globally, 411 new hydrogen vessels would be required, highlighting the infrastructure gap in transitioning to clean energy.
- The report underscores the importance of scaling up hydrogen-based fuel sources to five times the current levels, reaching approximately 500 million tonnes from 2030 to 2050 to align with net-zero emission targets.
- Countries like South Korea, Japan, and the EU are identified as key markets to kickstart hydrogen demand, with the EU aiming for 20 million tonnes of hydrogen per year by 2030, half of which is expected to be imported.
The International Chamber of Shipping (ICS) report outlines the pivotal role of the heavy industry sector in driving global hydrogen demand by 2050. Clean hydrogen is poised to revolutionize the energy landscape by serving as both an energy carrier and feedstock for decarbonizing challenging sectors like road transport, shipping, and aviation. Despite the promising potential of hydrogen, the report highlights current volatility in demand scenarios, posing challenges for businesses and investors. To meet the projected 30 million tonnes of annual green hydrogen demand worldwide, it is estimated that 411 new hydrogen vessels would need to be introduced, underscoring the critical infrastructure requirements for transitioning to sustainable energy sources. The report emphasizes the necessity of scaling up hydrogen-based fuel sources to five times the current levels, aiming to achieve around 500 million tonnes from 2030 to 2050 to align with net-zero emission goals. Furthermore, the analysis identifies countries such as South Korea, Japan, and the EU as key players in initiating hydrogen demand, with the EU setting a target of 20 million tonnes of hydrogen annually by 2030, half of which is anticipated to be sourced from imports. Guy Platten, the ICS secretary general, stresses the importance of industry in driving hydrogen demand while recognizing the significant potential of shipping in facilitating the hydrogen economy. The report serves as a strategic roadmap for stakeholders, underlining the market dynamics and supply chain implications in the transition towards cleaner energy sources.
Topics
South America
Clean Energy
Investment
Energy Transition
Decarbonisation
Market Analysis
Supply Chain
Global Demand
Industry Sector
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