A new report released by research firm Frost & Sullivan states that owing to decarbonisation efforts, the production of green hydrogen will increase by 57% between 2019 and 2030.
Annual production will increase from 40,000 tons in 2019 to 5.7 million tons in 2030, according to the report.
Increasing concerns about carbon emissions and the need to decarbonise the industrial, commercial, transport, and power sectors have forced countries to reduce their dependency on fossil fuel-based systems and increase investments across alternate low-carbon technologies, including green hydrogen.
To take advantage of the growing green hydrogen market, the research firm makes the following recommendations:
- Countries need to step up their hydrogen strategies and invest in pilot and demonstration projects for Power-to-X (PtX) technologies. Additionally, strong collaborations and partnerships are needed to scale up the technology.
- European countries and the US should add hydrogen to natural gas mixtures to reduce greenhouse gas (GHG) emissions, increase the integration of RES into the energy mix, increase the efficiency of the system, and help decarbonize the electricity, heat, industry, and transport sectors.
- Fuel cell companies should develop small, modular fuel cell power systems that can be customised to meet the needs of rural/remote communities or critical infrastructure facilities.
- Combined heat and power (CHP) fuel cell manufacturing companies should address concerns over their cost, reliability, and decreased efficiency to outperform their main competitors—lithium-ion energy storage system providers—and achieve competitive advantage.
Swagath Navin Manohar, industry analyst, said: “The total decarbonisation of certain sectors like transportation and power cannot be achieved solely by electrification. This challenge can be addressed by green hydrogen produced through electrolysis from RES (renewable energy sources), wind and solar, in particular.
“Hydrogen produced through electrolysis can then be used downstream as a chemical feedstock material in carbon-intensive sectors that are difficult to decarbonise through electrification alone. Currently, green hydrogen accounts for less than 1% of the total hydrogen produced. The global demand for green hydrogen and its emerging applications is expected to increase exponentially in the next 20 years, creating the need for considerable infrastructure to handle production and delivery.
“In the last five years, interest has grown in using green hydrogen as a low- or zero-carbon energy carrier. Many governments, including UK, Germany, Japan, and Singapore, have started acknowledging the fact that a green hydrogen-based economy could be the answer to growing concerns over carbon emissions, energy security, and climate change.
“Technological institutions in various countries (Germany, UK, US, and Australia) have already invested in pilot and demonstration projects related to the production, storage, distribution, and utilisation of hydrogen across different business verticals. For a green hydrogen economy to become a reality, technological and economical breakthroughs are needed to bring down the costs associated with production, while a decisive regulatory framework is required to promote investments and support research and development (R&D) in the sector.”
Learn more about the report.