China is set to become the world’s largest importer of green hydrogen by the end of this decade, requiring an annual import of 13 million tons to decarbonize various industrial sectors, according to a report by Deloitte.
The report also highlights European demand for clean hydrogen reaching 10 million tons by 2030, with Japan and South Korea each needing 7.5 million tons per year. Deloitte emphasizes the critical role of clean hydrogen in decarbonizing “hard-to-abate” sectors that cannot be feasibly electrified.
Green hydrogen is anticipated to find application in sectors like methanol production, refining, aviation, and road freight, with potential expansion into shipping and other sectors. However, despite the increasing number of green hydrogen projects announced globally, Deloitte warns that capacity will need to triple by 2030 to align with the net-zero by 2050 scenario presented by the International Energy Agency.
Governments worldwide are placing greater emphasis on supporting domestic hydrogen industries to meet climate targets and reduce reliance on foreign energy resources. The United States’ Inflation Reduction Act includes tax credits for clean hydrogen, while the EU’s renewables strategy aims to produce and import 10 million tons of renewable hydrogen by the end of the decade. The European Commission has introduced the concept of a ‘hydrogen accelerator’ to expedite the deployment of green hydrogen, contributing to the energy transition and decarbonization of the EU’s energy system.
