More than $2 trillion investment needed to meet IEA hydrogen targets

More than $2 trillion of investment would be required in equipment and infrastructure to sustain the accelerating global momentum towards establishing hydrogen as a competitive element of a net-zero carbon emissions economy by 2050, the Green Metals and Hydrogen symposium disclosed.

The year 2030 is viewed by key industry participants as a critical time when hydrogen-based technologies will become competitive with conventional technologies.

An IEA report expects the world to require 322 million tonnes of hydrogen by 2050 to meet the emissions targets set out by the recent COP26 conference. The IEA also expects the world to require 3,585GW of electrolyzer capacity by then.

According to the Hydrogen Council’s ‘Hydrogen Insight 2021’ report, global investment in hydrogen projects reached more than $500 billion for 69GW of electrolysis capacity this year.

On top of commitments by most nations to work towards net-zero targets, most recently, the energy transition got a shot in the arm with the Biden administration earmarking more than $10 billion for renewable energy projects in the Build Back Better framework, which includes investment in hydrogen.

In 2017 Japan was the first to commit to reducing the carbon footprint of thermal power sources through hydrogen power generation, and mainly through variation absorption and power storage projects required for the mass introduction of renewable energy. Hydrogen is also seen as critical to reducing the carbon footprint of the local passenger and cargo vehicle fleets, which account for about 85% of carbon dioxide emissions in the transport sector. The country has also succeeded in harnessing hydrogen to reduce the carbon footprint of heat generation in the industrial sector, such as steelmaking and oil refining.

Leave a Reply

Your email address will not be published. Required fields are marked *