Decarbonisation goals spark more interest in hydrogen

Subject

Hydrogen market outlook.

Significance

Hydrogen is an energy carrier which is clean burning at the point of use, but its production is carbon dioxide intensive. Producing it using electrolysis is a low- or zero-carbon process but it is currently expensive and at scale would contribute to water stress in some areas. Large-scale hydrogen use is likely to be paired with natural gas use, and carbon capture and storage.

Impacts

• Growing hydrogen demand should promote new sustainable hydrogen technologies.
• Hydrogen market dynamics are unlikely to affect the current strong growth in lithium-ion electric vehicles sales.
• Hydrogen storage could address energy storage needs but more trade will need more pipelines, or the cost of shipping it would need to fall.