Green Hydrogen: Turning Blue Skies Into Reality

2025-01-17 industry

Global, Friday, 17 January 2025.
Green hydrogen is redefining global energy, promising a sustainable future. Despite cost challenges, its potential for decarbonisation is immense and key to global climate targets.

The Current State of Hydrogen

I’m excited to share that we’re at a pivotal moment in the hydrogen economy. Currently, our global hydrogen demand stands at approximately 95 million tons per year [3], but here’s the stark reality - less than 1% of this hydrogen is produced through clean, renewable methods [3]. The majority of production, about 96%, still relies on fossil fuels [3][7], resulting in significant carbon emissions - up to 10 kg of CO2 for every kilogram of hydrogen produced [3]. The cost difference tells the story: while traditional ‘grey’ hydrogen costs €1-2/kg, green hydrogen currently ranges from €3-8/kg [1].

Breaking Down the Barriers

The challenges we face are significant but not insurmountable. One crucial bottleneck I’ve been following is the iridium constraint. This rare element, primarily sourced from South Africa and Zimbabwe, is essential for electrolyzers [3]. With current technology requiring 1-2 mg/cm² of iridium, and only 7-8 tons produced annually [3], we’re facing a critical materials challenge. However, there’s promising news - if we can achieve the target of reducing iridium usage to 0.1 mg/cm², the cost per gigawatt of electrolyzer capacity could drop dramatically from USD 60 million to just USD 6 million [3].

Regional Leaders Emerging

I’m particularly impressed by the momentum in several regions. The Middle East, Africa, Russia, the United States, and Australia are emerging as promising markets for green hydrogen production, with costs ranging between €3-5/kg [1]. The NEOM Green Hydrogen Project in Saudi Arabia stands out as a remarkable example - it’s set to become the world’s largest utility-scale green hydrogen plant, powered by 3.9 GW of renewable energy and representing an $8.4 billion investment [1]. By 2026, it aims to produce 600 tonnes daily [1].

Future Trajectory

Looking ahead, the numbers are compelling. The green hydrogen market is projected to grow from USD 1,792 million in 2024 to an impressive USD 47,481 million by 2034, with a CAGR of 38.78% [1]. In the broader context of climate goals, hydrogen could contribute to 10% of the emission reductions needed to limit global warming to 1.5°C [3]. The International Energy Agency’s projections suggest that in a Net Zero Emissions scenario, today’s hydrogen production needs to double by 2030 and increase sixfold by 2050 [3].

Bronnen

decarbonisation green economy