As the world races towards a sustainable energy future, hydrogen technologies have emerged as a “pivotal” source of energy for the coming decades, according to JPMorgan’s annual global energy outlook.
In their comprehensive analysis, the investment bank highlights the crucial role of hydrogen in decarbonizing hard-to-abate sectors like steel, ammonia, and heavy-duty transportation. However, JPMorgan also cautions that various obstacles, including regulatory impediments and technological challenges, may hinder the rapid deployment of hydrogen technologies before 2030.
JPMorgan’s outlook underlines the immense potential of hydrogen technologies in transforming various industrial sectors. Green hydrogen, produced using renewable energy sources, is expected to play a significant role in the global energy landscape. The report identifies Plug Power, ITM Power PLC, and Bloom Energy Corporation as key players driving innovation in the hydrogen market.
Plug Power has emerged as a leader in providing green hydrogen ecosystem solutions in North America, while Bloom Energy, a fuel cell manufacturer, is making strides towards developing solid-oxide electrolysers. Despite experiencing setbacks, UK-based ITM Power is viewed as having substantial turnaround potential, given its recent operational progress.
While the potential of hydrogen technologies is undeniable, JPMorgan acknowledges several challenges that need to be addressed for their successful large-scale deployment. Access and cost of renewable power, regulatory and fiscal policy support, transport infrastructure, and end-user readiness are among the hurdles that could slow down the adoption of hydrogen technologies.
Transportation, particularly ammonia cracking, and end-uses like steel, require further technological progress to unlock their full potential. As a result, large-scale deployment of green hydrogen is expected to take time, with JPMorgan projecting an output of about 10 million metric tons per annum in 2030, representing a mere 0.2% of global energy consumption.
While hydrogen takes center stage, JPMorgan also recognizes the potential of other technologies in mitigating the future energy shortfall. Blue hydrogen, small modular reactors (SMRs), and nuclear fusion hold promise, but scalability, cost, and commercial readiness are critical factors that will determine their widespread adoption. These technologies are anticipated to gain traction in the post-2030 journey towards achieving a net-zero future.
In conclusion, JPMorgan’s global energy outlook emphasizes the pivotal role of hydrogen technologies in shaping a sustainable energy future. Green hydrogen, in particular, holds immense promise in decarbonizing hard-to-abate sectors, paving the way for a cleaner and greener industrial landscape. However, addressing the challenges of scalability, cost, and regulatory support will be crucial in expediting the large-scale deployment of these technologies. As the world progresses towards a net-zero future, hydrogen technologies stand as a beacon of hope, providing a pathway to a more sustainable and resilient energy ecosystem.
