How Commercial is Low-Carbon Hydrogen? Key Insights

Insights into the state of low-carbon hydrogen at the moment, whilst looking into key measures taken around the world for its promotion.

Here’s an article posted in Woodlab.

According to the article,

Top management consulting experts for Bio-energy, EV, Solar, Green Hydrogen

Low-carbon hydrogen costs up to three times more than alternatives, but robust policy support including direct financial incentives can help it become competitive.
An estimated $80-$300 billion will be required to build the global low-carbon hydrogen economy by 2030.
Low-carbon hydrogen could gain a 14% share of global energy demand by 2050, according to the IEA.

Here are the key steps being taken around the world to promote low-carbon hydrogen production:

Government Support and Policies:
- Countries are developing national hydrogen strategies and roadmaps to guide the transition, such as Australia, Germany, the UK, the US, and India .
Partnerships and Collaborations:
- Developing countries are signing agreements and MOUs to collaborate on low-carbon hydrogen projects, such as Egypt and India, and Namibia and the Netherlands.
Technology Advancements:
- Research and development efforts are underway to improve the efficiency and cost-competitiveness of electrolysis and other low-carbon hydrogen production methods.
- Innovations in areas like carbon capture, utilization, and storage (CCUS) are enabling the production of “blue” hydrogen from natural gas with lower emissions.
Infrastructure Development:
- Countries are investing in building out hydrogen transportation and distribution infrastructure, such as pipelines and refueling stations.
Skill Development and Workforce Training:
- Initiatives are underway to build a skilled workforce capable of handling low-carbon hydrogen across the value chain, from R&D to operations.
Demand Creation:
- Policies and incentives are being introduced to stimulate demand for low-carbon hydrogen in hard-to-decarbonize sectors like heavy industry, transportation, and heating.

By taking these coordinated steps, countries and companies are working to overcome the technical, economic, and infrastructure challenges to scale up low-carbon hydrogen production and unlock its potential as a key solution for achieving net-zero emissions.