BAKU, Azerbaijan, September 19. Renewable and low-carbon hydrogen need to replace existing fossil fuel-based hydrogen, and is set to play a vital role in supporting a rapid clean energy transition, primarily in hard-to-abate applications where there are limited alternative clean energy solutions, such as heavy industry, maritime shipping, aviation, seasonal electricity storage, and potentially segments of heavy-duty trucking, Trend reports with reference to the International Energy Agency (IEA).
The latest IEA report reveals that progress to date has been limited, with less than 1 Mt/yr of renewable and lowcarbon hydrogen produced in 2020, versus the 140-155 Mt/yr needed by 2030.
“This implies that production capacity needs to approximately double every year from 2023 to 2030. This in turn will require an accelerated deployment of renewable power. To reach these targets, a sharp escalation in financing across the hydrogen value chain is required. Common standards, higher and sustained investment in RD&D, and increased demand commitments for both low-carbon and renewable hydrogen in sectors where unabated fossil fuel hydrogen is currently used and in new priority applications can all contribute to overcoming the challenges to cost-effectively support decarbonisation.
International collaboration on low-carbon and renewable hydrogen has a long history, with substantial activity since the mid-2000s, although there has been a significant increase in activity over the past 3-5 years. Stronger international action across multiple enabling conditions is imperative to accelerate the transition in the hydrogen sector and put it on track for the 2030 Breakthrough goal,” the report says.
---
Follow the author on Twitter: @Lyaman_Zeyn