Global trade of low-carbon hydrogen plays a vital role in driving global decarbonization, especially in transport and heavy industry sectors. However, volumes are currently held back by a variety of reasons. The looming supply shortage of green hydrogen has major global implications to limit the global temperature rise to 2°C.
Global demand for low-carbon hydrogen is predicted to rise steadily. Demand increases are estimated to reach 150 million t by 2030 and 520 million t in 2050 — but this robust growth potential needs policy support and other factors, according to a study by Cleantech Group.
Locally produced renewable hydrogen will be cheaper than that shipped in from overseas up to 2030, while it may also be cost-competitive with imports piped in from North Africa and European neighbours. However, scenarios that predict a higher overall demand for hydrogen also involve a greater dependency on imports.
The government of the Netherlands plans to host an auction to import green hydrogen or its derivatives at the end of this year or early 2024, backed by €300m ($329m) of subsidies. The tender would be held through Germany’s existing H2Global auction platform, which acts as a middleman between producers and buyers.
Electrolysers powered by nuclear generation capacity could deliver hydrogen — known as pink hydrogen — more cheaply in the United States than green hydrogen facilities hooked up to renewable energy, according to new analysis from French bank Lazard. How energy efficiencies and tax credits stimulate pink hydrogen production in the United States.