Global Heavy Industry Set to Drive Hydrogen Demand: Report Highlights Challenges and Opportunities
Key Ideas
  • A new report by the International Chamber of Shipping foresees heavy industry as a major driver of global hydrogen demand up to 2050.
  • South Korea, Japan, and Europe are projected to be the primary markets for hydrogen, with the maritime sector playing a pivotal role in enabling the hydrogen economy.
  • The report emphasizes the unprecedented scale of renewable electricity needed for green hydrogen production, presenting both opportunities and challenges for meeting future demand.
  • Europe aims for 20 million tonnes of hydrogen annually by 2030, requiring significant infrastructure development and an increase in the hydrogen-carrying vessel fleet.
The International Chamber of Shipping, in collaboration with a professor from Biberach University in Germany, has released a report highlighting heavy industry's pivotal role in driving global hydrogen demand until 2050. The report indicates that countries like South Korea, Japan, and Europe are expected to lead in hydrogen adoption, with Europe targeting 20 million tonnes of hydrogen annually by 2030. The maritime sector is identified as crucial in facilitating the transition to a hydrogen economy. However, the report underscores the immense challenge of scaling up renewable electricity to produce green hydrogen at the required levels. It predicts that meeting a global hydrogen demand of 30 million tonnes annually would necessitate 411 new hydrogen vessels, showcasing the scale of transformation needed in the energy and maritime sectors. The report emphasizes the significant opportunity for growth but also the need for substantial infrastructure development to remove barriers hindering maritime uptake of hydrogen. According to the report, the maritime industry is positioned to connect regions with hydrogen surplus to high-consumption areas, highlighting the role of shipping in the hydrogen supply chain. The arrival of the world's first liquefied hydrogen carrier, Suiso Frontier, in Australia signifies a milestone in the adoption of hydrogen as an energy carrier. The report concludes that while challenges lie ahead, the shift towards hydrogen presents a unique opportunity to revolutionize the global energy and maritime sectors.
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