H2 production to see 5000% increase by 2026January 5, 2021
The Bank of America forecasts that the hydrogen industry is at a tipping point headed to $11 trillion.
Following decades of false starts and regular stumbles, H2 production now appears to be on its way and the hydrogen economy is ready for major growth, says a new report.
Throughout 2020, countries and industries worldwide have announced hydrogen economy intentions.
Countries and industries worldwide are taking action to invest in H2 production, transportation, distribution and storage technologies. Hydrogen is commonly viewed as the “fuel of the future”. As a result, industry experts have predicted that this fuel could become a globally traded energy source – like gas and oil – sooner, rather than later.
The Bank of America has predicted that they hydrogen fuel industry has reached a tipping point. Moreover, it forecasts that it will soon rocket into a marketplace worth $11 trillion. There are still some who believe that predictions such as that one, are overly optimistic, particularly after the vilification of H2 for such a long time. However, the industry is already experiencing the steps required to prime it for such an explosion.
Strategies to boost H2 production and use are being released by important players worldwide.
The European Union released its hydrogen strategy as an important part of its 2050 target for carbon neutrality across all industries. Steps are already being taken for that bloc to build at least 40 gigawatts of electrolyzers, in addition to the import of about the same amount of green H2 from neighboring nations.
Countries such as Australia, Japan, China, and Canada, as well as several U.S. states have also released strategies suggesting a heavy lean on hydrogen as an emission-free fuel source. The private sector is also making its own efforts within the EU market.
The green H2 production leaders of the world are moving toward an ambitious goal of driving a scaling-up of 50 times its current size over the next six years. The Green Hydrogen Catapult Initiative has been established by founding partners including Australian project developer CWP Renewables, European energy giants Ørsted and Iberdrola, Saudi clean energy group ACWA Power, the Snam Italian gas group, and the Norwegian fertilizer producer Yara. They intend to drove 25 GW of green hydrogen production by the close of 2026, driving the cost of the renewable energy down to $2 per kilogram, making it competitive with fossil fuels.