BAKU, Azerbaijan, Oct. 23
By Leman Zeynalova - Trend:
From 2000 to the end of 2019, 252 megawatts (MW) of green hydrogen projects will have been deployed worldwide, Trend reports citing Wood Mackenzie research and consulting company.
By 2025, this will increase by 1,272 percent, with the deployment of a further 3,205 MW of electrolysers dedicated to green hydrogen production, according to the company.
Ben Gallagher, a senior analyst at Wood Mackenzie, believes that the large increase in the 2019-2025 period is partially due to the nascency of the market.
But aggressive targets in East Asia and increased interest from major international stakeholders will drive deployment in the near term, he added.
“While cost-competitiveness might be out of reach in most scenarios by 2025, national targets and pilot projects will produce enough volume to realise substantial capex declines beyond 2025,” noted Gallagher.
Gallagher said that as renewable energy deployment grows, so too will the green hydrogen market.
“But there are challenges. While green hydrogen has made gains in a number of key markets, including Japan, Germany and Australia, at present it cannot compete with the low costs of locally produced coal and natural gas-produced hydrogen in China and the US, for example,” said the company.
On top of this, it remains unclear if renewable PPA prices worldwide will fall fast enough to make green hydrogen production competitive, according to Wood Mackenzie.
However, Gallagher is optimistic about the green hydrogen sector’s future.
“We are just embarking on the energy transition,” he said. “There are several unknowns that would further spur adoption of green hydrogen: changing policy dynamics, new carbon regimes, new ways to monetise grid flexibility and lower-than-expected costs of renewables.”
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