BAKU, Azerbaijan, December 9. Hydrogen production is expected to account for 2 percent of global renewable capacity growth from 2022 through 2027, the International Energy Agency (IEA) said, Trend reports via the latest Renewables 2022 publication from the Agency.
According to the IEA's main forecast, around 50 GW of renewable capacity in the reporting period is projected to be dedicated to hydrogen production.
"China leads expansion, followed by Australia, Chile and the United States. Together, these four markets account for roughly two-thirds of dedicated renewable capacity for hydrogen production," the report noted.
An unprecedented federal policy to support low-carbon hydrogen production in the US is expected to increase renewable capacity by 4 GW, or 1.5 percent of total renewable capacity expected in 2022-2027.
"However, dedicated renewable capacity expansion will also depend on the business model chosen for new electrolyzer projects. Some projects in the pipeline are being developed through long-term contracts with existing solar PV projects or operating hydropower plants. The main threat to forecast growth is the potential for long project development periods, depending on equipment availability and permitting and regulatory approval wait times," the IEA noted.
Thus, growth could be 80 percent higher (90 GW) in IEA's accelerated forecast, if certain challenges are addressed.
"Securing off-takers to bring projects to financial close and obtaining regulatory clarity over definitions of low-emissions hydrogen could be the most important factors to unlock development of the project pipeline," the report added.