Hydrogen market outlook.
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.
- 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.