A ‘minimum’ of £458bn of investment and policy support will be needed by 2050 to get the global hydrogen market up and running.

That’s according to the latest hydrogen strategic planning outlook report from Wood Mackenzie, a Verisk company.

Flor Lucia De la Cruz, senior research analyst at the research firm, said: “Substantial investments are needed to meet the expected growth of the global low-carbon hydrogen market through 2050. .

“Developers will need to invest at least $600 billion by 2050, and consumers will need to commit to uptake of hydrogen not yet contracted. The opportunity is huge.”

While electrolyser capital expenditure will drop by up to 65% over the next decade, green hydrogen at less than $2 per kilogram will be achievable by 2040, according to Wood Mackenzie.

© Provided by CPH2
The CPH2 membrane-free electrolyser

Hydrogen demand will also grow exponentially, from less than 1 million tonnes (Mt) today to 223 Mt by 2050.

Initially, it will be driven by ammonia, which will represent 48% of demand by 2025.

But by 2036, the demand for electricity will exceed, making electricity the primary demand sector until 2050 with 31%.

Ms. De la Cruz added: “Energy security and net zero commitments will drive hydrogen demand in many sectors such as energy, steel, shipping and aviation.”

Co-fueling hydrogen in the form of ammonia in coal-fired power plants with traditional fossil fuel is expected to drive electricity demand up to 9 Mt by 2030.

After 2030, Wood Mackenzie expects to see hydrogen co-fuel with natural gas increase in Europe, bringing total electricity demand to 63 Mt by 2050.

In terms of hydrogen supply, the market is expected to see a new wave of project announcements, with 50 million tonnes per annum (Mpta) of hydrogen capacity already announced so far.

The total is expected to reach around 80 Mtpa this year, according to the Wood Mackenzie report.

Bridget van Dorsten, research analyst at Wood Mackenzie, said: “Green hydrogen is set to dominate the pipeline, with Australia leading the supply of green hydrogen, holding 47% of the supply by 2029. After 2030, we expect a rapid increase in supply. worldwide, and China becomes the largest supplier by the end of the 2040s.”

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