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,

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.