In its annual Global Hydrogen Review, published on 22 September, the International Energy Agency (IEA) highlights the production potential of low-carbon hydrogen, but warns that inflation and supply chain disruptions are a threat to its deployment, particularly in Europe, which has been hit by rising natural gas prices.
“If all announced projects are realised, a total of 420 GW could be achieved by 2030, an increase of 75% compared to the IEA’s 2022 review”, the report states.
In particular, the IEA highlights the increase in electrolyser capacity for hydrogen production, with China in the lead.
However, while global hydrogen consumption has increased, the share of low-carbon hydrogen remains limited (less than 1% of global hydrogen production), meaning a significant amount of CO2 is still emitted.
The report highlights a number of obstacles to the growth of low-carbon hydrogen: policy initiatives and public funding are focused on production rather than demand, and demand signals from international cooperation initiatives remain unclear.
Moreover, most hydrogen consumption is still concentrated in traditional sectors such as industry and refining.
“Greater progress is needed on technology, regulation and demand creation to ensure low-emissions hydrogen can realise its full potential”, said IEA Executive Director Fatih Birol.
The IEA is therefore calling on governments to take steps to reduce the risks and improve the economic viability of low-carbon hydrogen, in particular by putting in place effective support programmes, stimulating demand and removing regulatory barriers.
International cooperation is also recommended to establish common standards for the hydrogen market.
To read the IEA report: https://aeur.eu/f/8qn (Original version in French by Pauline Denys)