Low-carbon hydrogen needs policy support to reach bold growth goals, study finds
In California. a study by Cleantech Group finds that a favorable policy environment and $80 – $300B of investment will be required to build the global low-carbon hydrogen economy by 2030. Demand increases are estimated to reach 150 Mt by 2030 and 520 Mt in 2050. The Cleantech group report found that low-carbon hydrogen costs up to three times more than alternatives, but robust policy support including direct financial incentives, can help it become competitive. Low-carbon hydrogen could gain a 14% share of global energy demand by 2050, according to the IEA.
“Green hydrogen production is energy-intensive and there is a need for additional renewable capability, new infrastructure, and a better supply chain,” said Selene Law, Sr. Associate Energy & Power at Cleantech Group. “The industry will need to overcome technical midstream challenges and aggressively cut costs to become competitive,” she added.
“Stable and supportive policy environment is also crucial,” Law said. “Convoluted support procedures in the EU, uncertainty around hydrogen regulation in the U.S., and an insufficient number of hydrogen purchase agreements (HSAs) lead to delays in investment decisions.”
Category: Hydrogen
