Path To Hydrogen Competetiveness

As public pressure is rising to limit global warming to 1.5 degrees Celsius, global leaders are grappling with how to best take on this unprecedented challenge. Full decarbonisation requires a multidimensional strategy, which has spurred renewed interest in hydrogen. Governments are recognising hydrogen’s ability to decarbonise sectors that are otherwise impossible or difficult to abate – such as intensive personal or collective transport, freight logistics, industrial heating and industry feedstock – and its role in energy security. Meanwhile, industry leaders across the automotive, chemicals, oil and gas, and heating sectors look to low-carbon hydrogen as a serious alternative to reach their increasingly substantial sustainability objectives.

The Hydrogen Council’s previous report, ‘Hydrogen Scaling Up’, showed the critical role hydrogen could play in global industrial decarbonisation. Since then, technological advances and early demonstration projects have significantly lowered the cost of many hydrogen applications. Yet despite rapid improvements in recent years and a clear prospect for further cost reduction, the competitiveness trajectory and required investments to reach the scale at which hydrogen is competitive remain unclear to many.

This report provides an evidence base on the path to cost competitiveness for 40 hydrogen technologies used in 35 applications. For policymakers, such a perspective provides firm ground on which to base financial and non-financial support that will unlock the economic value of hydrogen and to develop adequate policy frameworks. For decision-makers in industry, it brings a holistic picture of whole value chain cost dynamics and interactions, allowing them to put their own efforts into a broader perspective.

Read The Full Article