With the adoption of legislated net zero targets by governments around the world, the focus has shifted to how exactly these targets can be met.
In addition, the growing share of renewables in the energy mix has created an urgent need for energy storage. Clean hydrogen can help us to deal with the intermittency of renewables by converting power to a storable, usable gas to replace hydrocarbons, reduce greenhouse gas emissions and improve air quality. All of this enables the world to deliver its climate change mitigation ambitions.
Hydrogen applications build-out
Clean hydrogen is the only net zero energy gas and this has been recognised in the plans adopted to date by the EU and individually by Germany, France, Spain and Portugal – all of which have committed to the use of clean hydrogen to decarbonise industry and to improve air quality. And they have backed this commitment with billions of Euros to kick-start the process. Similar plans are in place in several Asian countries, and other regions are expected to follow suit.
This means that markets for clean hydrogen, and its production processes, are growing fast and accelerating. The potentially enormous market to replace hydrogen produced from hydrocarbons in the current hydrogen supply chain is being addressed already by the falling costs of renewable energy and electrolysis as well as by carbon capture and storage pilots.
Hydrogen’s role in decarbonising the energy system