Hydrogen Insights 2023 December Update is the latest update on the global hydrogen economy from the Hydrogen Council and McKinsey & Company. It summarizes the current state of the global hydrogen sector and actual hydrogen deployment, with a deep dive into renewable hydrogen cost evolution.Continue reading
The 2023 Update of Global Hydrogen Flows from the Hydrogen Council and McKinsey & Company assesses how global hydrogen trade flows could evolve.Continue reading
Hydrogen in Decarbonized Energy Systems is a new report from the Hydrogen Council and Baringa detailing the benefits of incorporating hydrogen in evolving energy systems.Continue reading
Hydrogen Certification 101 was developed under the Breakthrough Agenda’s Hydrogen Breakthrough priority action H.1 “standards and certification”, coordinated by IPHE and IEA H2 TCP, with support from IRENA and contributions from the Hydrogen Council and the International Power-to-X Hub.Continue reading
Hydrogen Insights 2023 is the latest update on the global hydrogen economy from the Hydrogen Council and McKinsey & Company. It summarizes the current state of the global hydrogen sector and actual hydrogen deployment, with a deep dive into North America.Continue reading
Our estimates suggest that hydrogen needs to grow seven-fold to support the global energy transition, eventually accounting for 10 percent of total energy consumption by 2050. A scale up of this magnitude will increase demand for materials, such as aluminum, copper, iridium, nickel, platinum, vanadium and zinc, to support hydrogen technologies – renewable electricity technologies and the electrolyzers for renewable hydrogen, carbon storage for low-carbon hydrogen, or fuel cells using hydrogen to power transport.
An analysis of the impact of this material intensity is vital to deploying hydrogen sustainably, at scale. First, it can help identify bottlenecks in the supply of a critical material that could create challenges for the entire hydrogen sector or a specific technological component. Second, it highlights the need to consider the wider environmental challenges—impacts on greenhouse gas emissions or stresses to water supply—that may arise from mining and processing the materials. And last, while the material footprint of the hydrogen economy is low, it’s worth assessing whether materials needed for hydrogen may be competing with large-scale demand from other – and fast-growing – sectors of the low-carbon transition, such as wind, solar, and battery technologies.
This report, a joint product of the World Bank and the Hydrogen Council, examines these three critical areas. Using new data on the material intensities of key technologies, the report estimates the amount of critical minerals needed to scale clean hydrogen. In addition, it shows how incorporating sustainable practices and policies for mining and processing materials can help minimize environmental impacts. Key among these approaches is the use of recycled materials, innovations in design in order to reduce material intensities, and adoption of policies from the Climate-Smart Mining (CSM) Framework to reduce impacts to greenhouse gas emissions and water footprint.
This research should be seen as the starting point of analysis in this area, with a need to increase the scope and depth to give a more complete picture of the material impacts of hydrogen along its value chain, including crucial aspects such as transportation, storage, and distribution.
Ultimately, governments and the private sector need to be proactive and work together to ensure that the supply of key materials across the energy transition can be successfully deployed without impeding the global supply of clean hydrogen, and that these materials can be supplied with the lowest environmental and social footprint possible.
Authored by the Hydrogen Council in collaboration with McKinsey and Company, Global Hydrogen Flows addresses the midstream challenge of aligning and optimizing global supply and demand. It finds that trade can reduce overall system costs.
In doing so, it provides a perspective on how the global trade of hydrogen and derivatives, including hydrogen carriers, ammonia, methanol, synthetic kerosene, and green steel (which uses hydrogen in its production), can develop as well as the investments needed to unlock the full potential of global hydrogen and derivatives trade.
Our hope is that this report offers stakeholders – suppliers, buyers, original equipment manufacturers (OEMs), investors, and governments – a thorough and quantitative perspective that will help them make the decisions required to accelerate the uptake of hydrogen.
Key messages from the report:
- Hydrogen and its derivatives will become heavily traded: 400 out of the 660 million tons (MT) of hydrogen needed for carbon neutrality by 2050 will be transported over long distances, with 190 MT crossing international borders.
- In a cost-optimal world, around 50% of trade uses pipelines, while synthetic fuels, ammonia and sponge iron, transported on ships, account for approximately 45%. Europe and countries in the Far East will rely on imports, while North America and China are mostly self-reliant.
- Trade has huge benefits: It can lower the cost of hydrogen supply by 25%, or as much as US$6 trillion of investments from now until 2050. This will accelerate the hydrogen transition, which can abate 80 gigatons of CO2 until 2050.
Authored by the Hydrogen Council in collaboration with McKinsey and Company, Hydrogen Insights 2022 presents an updated perspective on hydrogen market development and actions required to unlock hydrogen at scale.
The pipeline of hydrogen projects is continuing to grow, but actual deployment is lagging.
680 large-scale project proposals worth USD 240 billion have been put forward, but only about 10% (USD 22 billion) have reached final investment decision (FID). While Europe leads in proposed investments (~30%), China is slightly ahead on actual deployment of electrolyzers (200 MW), while Japan and South Korea are leading in fuel cells (more than half of the world’s 11 GW manufacturing capacity).
The urgency to invest in mature hydrogen projects today is greater than ever.
For the world to be on track for net zero emissions by 2050, investments of some USD 700 billion in hydrogen are needed through 2030 – only 3% of this capital is committed today. Ambition and proposals by themselves do not translate into positive impact on climate change; investments and implementation on the ground is needed.
Joint action by the public and private sectors is urgently required to move from project proposals to FIDs.
Both governments and industry need to act to implement immediate actions for 2022 to 2023 – policymakers need to enable demand visibility, roll out funding support, and ensure international coordination; industry needs to increase supply chain capability and capacity, advance projects towards final investment decision (FID), and develop infrastructure for cross-border trade.
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This report is accompanied by Hydrogen Insights, a paid subscription-based platform that will provide a regularly updated, global perspective on hydrogen investment momentum, market development, and cost competitiveness. The paid service is available for non-members of the Hydrogen Council. To subscribe and for more information, contact the Secretariat – firstname.lastname@example.org.
The report “Policy Toolbox for Low Carbon and Renewable Hydrogen” is based on an assessment of the performance of hydrogen policies in different stages of market maturity and segments of the value chain. 48 policies were shortlisted based on their economic efficiency and effectiveness and mapped to barriers across the value chain and over time. These policies were subsequently clustered into policy packages for three country archetypes: a self-sufficient hydrogen producer, an importer, and an exporter of hydrogen.
The report was developed with analytical support by Vivid Economics.
View the full report here.
Read the press release here.
The report “Hydrogen for Net Zero” presents an ambitious, yet realistic deployment scenario until 2030 and 2050 to achieve Net Zero emissions, considering the uses of hydrogen in industry, power, mobility, and buildings. The scenario is described in terms of hydrogen demand, supply, infrastructure, abatement potential and investments required, and then compared with current momentum and investments in the industry to identify the investment gaps across value chains and geographies.
The report is based on the technoeconomic data of cost and performance of hydrogen technologies provided by Hydrogen Council members and McKinsey & Company as well as the Hydrogen Council investment tracker, which covers all large-scale investments into hydrogen globally.
View the full report here.
Read the press release here.