Drivers for the global up-take of green hydrogen in industry
Green hydrogen (GH2) produced from renewable energy source, has great potential to contribute to the deep decarbonization of industry at global level and is a key success factor of the energy transition.
Hydrogen use today is dominated by industrial applications. The top four single uses of hydrogen are: oil refining (33%), ammonia production (27%), methanol production (11%) and steel production. The current global production of hydrogen is approximately 70 million ton per year, with less than 0.1 per cent being GH2. Based on current hydrogen market scenarios, however, GH2 is increasingly becoming a cost-competitive option as prices of renewable energy are expected to fall by 30% by 2030 and production facilities are increasing. Additionally, there is a large potential of exporting GH2 through pipelines and maritime applications to countries with limited land and renewable energy potential.
Building national hydrogen strategies, establishing conducive governance systems and driving innovation are crucial for GH2 implementation and making GH2 a least-cost solution. 56 countries around the world have initiated work on hydrogen strategies. The European Commission published a long-term decarbonization strategy that includes hydrogen pathways for achieving carbon neutrality; recast the directive on the promotion of the use of energy from renewable sources, enabling hydrogen produced from renewable sources with guarantees of origin to be counted against 2030 renewables targets.
While green hydrogen activities are gaining momentum in Europe, the Asia and Pacific region, as well as in some parts of the Americas, many developing countries and emerging economies still lack policies and initiatives on GH2 and risk to be left behind.
During this panel discussion, different stakeholders will gather to address and discuss key drivers for the global application of GH2 in industry. Participants will be representatives from industry, government, financial institutions and research institutions. They will bring forward their specific expertise and debate innovative approaches and ideas to accelerate the uptake of GH2 in industry addressing market demand, financing and investments, creation of new value chains innovation and governance.