Governments worldwide, recalibrating their hydrogen blueprints, are aligning with the consensus that clean hydrogen should take precedence in sectors where electrification faces challenges.
Irish Climate Minister Eamon Ryan encapsulates this approach, emphasizing direct electrification unless hydrogen proves significantly efficient. Notably, Western governments are pivoting away from supporting hydrogen use in cars and residential heating. Acknowledged as likely niche solutions, attention now pivots towards eradicating highly polluting gray hydrogen from sectors such as fertilizer production, chemical manufacturing, oil refining, and the ambitious decarbonization of steel and long-distance transportation.
The European Union emerges as a pioneer in this clean hydrogen transition with the implementation of the Renewable Energy Directive (RED III). This landmark directive mandates that key industries secure a substantial portion of their hydrogen, reaching 42% by 2030 and scaling to 60% by 2035, from renewable sources. Additionally, the directive establishes targets for Renewable Non-Biological Origin Fuel (RFNBO) in transport fuels, emphasizing green hydrogen and its derivatives.
Complementing RED III, the EU has enacted three other directives amplifying the role of green hydrogen. The Alternative Fuels Infrastructure Regulation (AFIR) sets the stage for hydrogen refueling stations along vital transport networks by 2030. Simultaneously, FuelEU and ReFuelEU Aviation directives lay down emissions reductions for ships and necessitate the use of synthetic kerosene produced from green hydrogen at EU airports.
As hydrogen car prospects dwindle in certain markets, hydrogen trucks are witnessing a surge in opportunities. California, a significant fuel cell vehicle market, grapples with soaring hydrogen prices, making electric cars a more economical choice. South Korea’s declining fuel cell vehicle sales cast shadows on the nation’s ambitious goal of flooding its streets with 270,000 hydrogen cars by 2030.
The evolving focus on clean hydrogen signifies a paradigm shift towards sectors where its impact is substantial. Governments and industries globally are realigning their strategies, propelling the market for green hydrogen and its derivatives towards unprecedented growth. As policies reshape the energy landscape, clean hydrogen emerges not just as a promising alternative but as a transformative force steering the world towards a more sustainable and resilient future.
