CA - A Return To Reality In The Path Towards Scaling Up Hydrogen

2024-01-30 06:00:00 ET

Summary

• We expect the hydrogen market to grow in 2024, but less so than many have hoped for.
• The year ahead is also set to deliver policies for future growth.
• The actual number and size of new projects are less important; attention should now shift to turning them into success stories so that confidence in hydrogen is able to flourish.

By Gerben Hieminga, Senior Sector Economist & Coco Zhang, ESG Research

Hydrogen provides a way to transition away from fossil fuels

Efforts to decarbonise the global economy are starting to reach a turning point as the COP28 climate conference reached agreements to transition away from fossil fuels. But the potential for renewables is limited in energy-intensive sectors, as electrons often cannot substitute the very high-temperature heat. Nor are they a substitute for hydrocarbon molecules from fossil fuels that are needed to make products like steel, plastics, pharmaceuticals, and fuels for aviation, shipping, and trucking....

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