Clean hydrogen, often touted as the holy grail of sustainable energy, is experiencing an unprecedented boom. A recent report from BloombergNEF (BNEF) reveals that the global pipeline of proposed clean hydrogen projects has soared, now standing at a staggering 174 million tonnes per year. This remarkable threefold increase since January signals the world’s commitment to cleaner energy and a sustainable future.
The surge in clean hydrogen initiatives brings us tantalizingly close to the volume needed to achieve a net-zero scenario by 2040. According to BNEF’s projections, we will require 197 million tonnes of clean hydrogen by that year to effectively combat climate change and transition to a sustainable energy landscape.
While this milestone is within reach, it is crucial to recognize that the growth of clean hydrogen is not solely due to altruistic environmental goals. It is equally driven by economic and strategic considerations. Green hydrogen, produced using renewable energy sources, promises energy independence, reduced emissions, and economic growth.
Clean hydrogen is not only a vision but also a massive financial commitment. As of September 2023, the global funding available for clean hydrogen projects stands at an impressive USD 308 billion (EUR 291 billion). This substantial figure marks a remarkable 46% increase compared to the end of 2022.
Leading the charge in this financial commitment are the United States and Europe, showing their dedication to being at the forefront of clean hydrogen adoption. The significant capital available for hydrogen projects highlights the growing consensus that clean hydrogen is a critical element in the global energy transition.
The report also shines a light on the growing capacity of green hydrogen production. Green hydrogen equipment suppliers are gearing up to double their output in 2023, with the expected delivery of 1.7 GW to 2.1 GW of electrolysers. This remarkable increase reflects the booming interest in hydrogen production technology, driven by the demand for clean energy.
The surge in clean hydrogen projects and funding signifies a global commitment to transitioning to a sustainable energy future. It’s a significant step forward in the fight against climate change and dependence on fossil fuels. However, we must be mindful of the demand-side challenges and continue to create an environment that encourages clean hydrogen adoption. The path is promising, but it requires collective commitment and coordinated efforts to reach its full potential.