BAKU, Azerbaijan, June 14. GDP percentage to be spent on energy is set to fall by 2050, Trend reports with reference to DNV GL.
“In 2021, USD 12bn was invested globally in hydrogen as energy carrier. Annual investment in hydrogen and its derivatives by 2030 will stand at USD 129bn and by 2050 at USD 440bn — with hydrogen as an energy carrier growing rapidly by then and well into the second half of this century. As impressive as these figures are, much more investment will be needed in hydrogen, and sooner, to ensure a Paris-compliant energy transition. Our Pathway to Net Zero Emissions sees hydrogen accounting for around 13 percent of global energy demand, more than double the most likely future we forecast for hydrogen,” the company said in its latest report.
DNV GL forecasts that the percentage of world gross domestic product (GDP) that will be spent on energy is set to fall from 3.2 percent in 2019 to 1.6 percent in 2050 owing to rising efficiencies associated mainly with electrification.
“If the current fraction of GDP devoted to energy expenditures were to remain constant, the surplus funds to spend on clean energy would grow by around USD 2trn each year, reaching close to USD 63trn by 2050 — enough to finance a transition compliant with the Paris Agreement, including the required scaling of decarbonized hydrogen.
Early-stage investment can be a challenge. Initial support and industry involvement is needed to fast-track projects to the stage where they have lower risk and fit the profile for widely-used financial mechanisms. It is a question of achieving safe, large-scale production of low-carbon hydrogen at a lower price. The ambition is to develop the maturity of markets and investors within them, so that different financiers have the business models and risk appetites to come in at each stage of a project, from concept to completion. For hydrogen, most projects — beyond pilots and R&D — are in the pre-development phase. Risk is high at this stage, and it is developers and IOCs (international oil companies) that are active,” says the report.
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