In a world striving to achieve net zero emissions by 2050, the spotlight is now on green hydrogen as the potential ‘new oil’ of the 21st century.
This clean energy source is not only crucial for reducing emissions but also for decarbonizing hard-to-abate sectors such as steel, chemicals, and shipping. The global push towards clean hydrogen is driven by the decreasing costs of technology and renewable energy. However, more significant cost reductions are needed to fully transition to green hydrogen.
The shift towards green hydrogen will create new job opportunities, technological advancements, and market expansion, ultimately impacting the entire value chain. Countries and companies are now partnering to build the necessary infrastructure for the widespread adoption of green hydrogen, with the market projected to reach $30 billion by 2030.
Unlike grey hydrogen, which is produced from coal and natural gas, green hydrogen is derived from low-carbon sources, making it a more sustainable alternative. Countries like the United Arab Emirates, Germany, Japan, and South Korea are already making significant investments in green hydrogen production and infrastructure development. The transition to green hydrogen also presents opportunities for industries like steel and shipping to decarbonize through the use of green ammonia as an intermediary fuel.
The road to scaling up green hydrogen production faces challenges such as high costs and infrastructure limitations. Companies like Equinor, Plug Power, Fortescue Future Industries, and Enapter are actively working on developing electrolyzers and other technologies to overcome these obstacles. The adoption of green hydrogen in industries like steel and shipping is projected to significantly reduce production costs and emissions, positioning it as a key player in the global energy transition.
