Hydrogen to contribute 12% of global decarbonisation

There is potential for clean hydrogen to develop into a major market.

Hydrogen is seen to have a critical role in the push for decarbonisation with its projected contribution of 12% as its market is expected to grow over 6.5x from roughly 95 million tonnes in 2022 to approximately 630 million tonnes per annum by 2070.

“The recent focus on de-carbonisation and the scaling up and accelerated growth of low-carbon technologies such as renewables have sparked a new wave of interest in the properties and the supply chain scale-up of hydrogen,” Goldman Sachs said in a report.

The momentum behind hydrogen, fueled by policies like REPowerEU and the US IRA, has significantly accelerated since 2022.

However, developments slowed down last year, which is expected to continue until 2025, due to high interest rates, and more expensive renewable power generation amongst others.

“Despite a slower-than-expected pace of hydrogen projects development, we believe clean hydrogen can develop into a major global market, with global electrolyzer capacity reaching >1100 GW by 2050 and >3200 GW by 2070, on our estimates,” Goldman Sachs said