Hydrogen Markets: The Dynamics of Supply and Demand
A workshop hosted by the Stanford Hydrogen Initiative
Tuesday, March 26, 2024 | 8:30 AM - 5:00 PM Pacific
Cardinal Hall, Stanford University | 505 Broadway, Redwood City, CA 94063
Read the workshop's executive summary here
The current global hydrogen demand of 90 Mt is projected to increase sixfold by 2050 as hydrogen is leveraged across many sectors to meet net zero emissions targets. However, these nascent hydrogen markets require both adequate supply of hydrogen and demand from customers. The provisions for hydrogen production within the Inflation Reduction Act and the funding of the seven hydrogen hubs has created a lot of momentum on the supply side of the equation from current and would-be producers. However, the potential supply of hydrogen appears to be much greater than the current demand from customers. This perceived market mismatch, permitting and process bottlenecks, evolving policy details such as 45V, and potentially other factors are resulting in many announced projects but limited investment and slow project execution in the sector.
This workshop, hosted by the Stanford Hydrogen Initiative, brought together thought leaders from academia, industry, government agencies, and NGOs to discuss the commercial, policy and technical aspects that will enable hydrogen markets to fully develop, and explore the factors limiting the investment and execution of new hydrogen projects
Discussion topics included:
An overview of the hydrogen hubs
Supply: What is the actual supply of hydrogen and where have investments been made in production projects?
How do proposed projects plan to leverage 45V and 45Q and what is the impact of recent guidance clarification?
What are the main hurdles and obstacles for developing markets: Financing of hydrogen projects, grid issues and integration of infrastructure?
What are the sectors adopting low carbon hydrogen and where the rubber meets the road in terms of uptake agreements?
Demand incentives: How might we establish hydrogen markets and level the playing field for hard-to abate sectors?
What could be done to stimulate the market and establish complementary supply and demand curves?
