Hydrogen Toolkit: Powering Industry's Green Revolution
London, Thursday, 17 October 2024.
A groundbreaking toolkit for low-carbon hydrogen investment launches today, aiming to revolutionise industrial decarbonisation. With only 10% of planned clean hydrogen capacity having identified buyers by 2030, this guide offers C-Suite leaders practical steps to bridge the gap and accelerate adoption. It’s time to turn demand signals into action!
Guiding the Leaders
Alright, let’s dive into the heart of this toolkit. Dubbed ‘Strategic Investment in Low-Carbon Hydrogen Offtake,’ it’s a joint effort by the World Business Council for Sustainable Development (WBCSD) and Baker McKenzie. Launched just two days ago, on 15 October 2024, this toolkit is designed to be a lifeline for C-Suite and board leadership. It offers guidance on navigating the tricky waters of investment decisions in low-carbon hydrogen, crucial for anyone looking to make a serious dent in their carbon emissions[1].
The Urgent Need for Decarbonisation
The clock is ticking on climate change, and industries like steel, transport, and chemicals are feeling the heat. The International Energy Agency (IEA) projects that low-carbon hydrogen production will skyrocket to over 20 million tonnes annually by 2030. Yet, only a tenth of the necessary capacity has a buyer lined up. This misalignment between short-term procurement and long-term demand is where the toolkit steps in, offering strategies to close this gap[1].
Taking Action
The toolkit doesn’t just point out problems; it suggests four key actions for businesses: inform policymaking, pinpoint emission reduction locations, explore internal supply chain projects, and foster collaboration across the value chain. By weaving these strategies into their operations, companies can support carbon neutrality goals and create a closed-loop offtake approach[1][2].
Success Stories
What’s a guide without some real-world examples? The toolkit includes case studies from sectors like steel and chemicals, illustrating how low-carbon hydrogen can be integrated into existing operations. These stories highlight the growing pipeline of hydrogen projects, underscoring the investment interest despite current challenges in finalising investment decisions[1].
The Business Opportunity
As Andrew Hedges, Global Head of Climate Change at Baker McKenzie, aptly puts it, transitioning to low-carbon hydrogen is not just an environmental imperative but a strategic business opportunity. It’s about transforming demand signals into tangible actions that align with a company’s decarbonisation ambitions. Nancy Gillis from WBCSD reinforces this, urging businesses to move from signalling demand to making actual investments[1].
Looking Ahead
With this toolkit in hand, the hope is that more companies will step up to the plate and commit to low-carbon hydrogen. The journey towards decarbonisation is complex, but with clear guidance and a willingness to innovate, industries can make significant strides. The future may be challenging, but tools like this make it a little less daunting and a lot more achievable[1].