, APAC
Photo by Etienne Girardet from Unsplash

Low-carbon hydrogen growth requires policy backing

Growth of low-carbon hydrogen requires resources valued between $80b and $300b.

Global demand for low-carbon hydrogen is projected to rise gradually but will need the support of stable policies.

In a study by Cleantech Group, demand for low-carbon hydrogen has made up less than 1% of the overall hydrogen production in 2022.  With the trajectory, demand is expected to grow by 150 metric tons (Mt) by 2030 and 520 Mt in 2050.

However, its steady performance will be contingent on the policy environment to establish a global low-carbon hydrogen economy by 2030, including an estimated plan that is valued between $80b to $300b.

Any policy change will have to start with a strong global strategy, wherein innovation can lessen the cost of low-carbon hydrogen production by 80%.  Currently, several countries have implemented a $1-$3/kilogram goal that curbs the usage of fossil fuel equivalents.

ALSO READ: Adani Total Gas rolls out green hydrogen blending project

Next will target programmes with a far-reaching impact that can decarbonise industries, like heavy-duty trucking (6% of global CO2 emissions), steel production (9% of CO2), and aviation (2.4% of CO2). Then, during the policy implementation, funding has to be consistent to allow a cost-efficient production of low-carbon hydrogen.

Businesses can consider the available options for the production of various hydrogen types, Green hydrogen is the most popular segment with $954m, next to hydrogen pyrolysis with $300.1m.

“Green hydrogen production is energy-intensive and there is a need for additional renewable capability, new infrastructure, and a better supply chain. The industry will need to overcome technical midstream challenges and aggressively cut costs to become competitive,” Selene Law, Senior Associate Energy & Power of Cleantech Group, stated.

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Summit Power International provides vital LNG support to Bangladesh
Without cross-border electricity supply, LNG is needed by a country facing geographical constraints to deploy renewables.
Power Utility
PLN focuses digital processes on equitable electricity distribution
State-run firm’s president succeeded in electrifying 76,900 villages and sub-districts throughout Indonesia.
VOX POP: How can vehicle-to-grid technologies boost energy transition?
Vehicle-to-grid (V2G) technology is seen as a groundbreaking innovation towards the resilience of the power grid and the improvement of robust energy transition.