According to Deloitte’s 2023 global green hydrogen outlook, the clean hydrogen market is poised to surpass the value of the liquid natural gas trade by 2030.
The report projects that by 2050, the market will reach an impressive $1.4 trillion annually. The majority of this growth is expected to come from green hydrogen, which is produced by using renewable energy sources to extract hydrogen from water molecules through electrical currents.
Deloitte’s outlook also highlights the significant role that clean hydrogen can play in sustainable development, particularly in developing countries. It suggests that clean hydrogen could account for nearly 70 percent of the projected $1.4 trillion market in 2050, supporting up to 2 million jobs worldwide each year from 2030 to 2050.
In terms of environmental impact, clean hydrogen has the potential to make a substantial contribution to reducing CO2 emissions. Deloitte’s report indicates that by 2050, clean hydrogen could help reduce cumulative CO2 emissions by up to 85 gigatons, which is more than double the global CO2 emissions recorded in 2021.
Deloitte’s outlook offers detailed analysis of the cost, production, and market dynamics of hydrogen. It examines the challenges involved in successfully implementing clean hydrogen, such as infrastructure sizing, investment requirements, and technology choices.
The global hydrogen trade is projected to generate over $280 billion in annual export revenues by 2050, with North Africa expected to benefit significantly, reaching $110 billion per year due to its export potential. To unlock the full value of clean hydrogen on a global scale, substantial investments in the clean hydrogen supply chain are necessary.
According to Deloitte, achieving net-zero compliance by 2050 will require more than $9 trillion in cumulative investments in the global clean hydrogen supply chain, with developing economies accounting for $3.1 trillion of this total. Jennifer Steinmann, Deloitte Global Sustainability & Climate practice leader, emphasizes the importance of investing in the supply chain.
While the financial aspect of clean hydrogen may not pose a significant challenge, as the required annual investment is considerably less than what was spent on oil and gas production globally in 2022, there are obstacles to meeting the projected demand. Based on current project announcements, Deloitte’s outlook suggests that by 2030, the global community would only be able to fulfill a quarter of the anticipated demand for clean hydrogen.
