The Current Hydrogen Market

Source: http://hydrogencouncil.com

Hydrogen has become a key component in the energy transition towards decarbonisation. The Hydrogen Council in collaboration with McKinsey & Company have published the report: “Hydrogen Insights 2021: A Perspective on Hydrogen Investment, Deployment and Cost Competitiveness”.

The report gives a perspective of the current state of hydrogen industry. They report that there are more than 30 countries with hydrogen roadmaps and 228 large-scale hydrogen projects, with 85% located in Europe, Asia and Australia.  The total investment will be more than $300 billion until 2030. There are already projects in the planning stage, already assessed, under construction or even operational worth $80 billion and $70 billion in public funding.

It is believed that the production costs will fall faster than it was believed if scaled-up within a long-term regulatory framework, as long as the costs of the renewable energies keep falling. It is estimated that by 2030 the renewable hydrogen production costs will be between $2.3 per kilo and $1.4 per kilo.

In order for the use of hydrogen to become general, an efficient distribution is required. In the first phase, the hydrogen production plant will need to be nearby but long term, the need to convey hydrogen at long distances will have to be studies and that’s why ships propelled by liquid hydrogen (LH2), by liquid-organic compounds (LOHC) and ammonia (NH3).

It is estimated that hydrogen will be the least polluting solution for more than 20 different uses, including shipping, long haul transportation and Steel. Once its use becomes more popular, the production costs will fall, thus guaranteeing that other applications, already under study, will become a reality, for example, aviation and housing.

It is expected that hydrogen clusters will be created. The three main types of clusters being: industrial clusters supporting refining, power generation, Steel and fertiliser production; export hubs in resource-rich countries and finally, port areas for bunkering, logistics and transportation.