Hydrogen can be produced from a variety of resources, such as natural gas, nuclear power, biogas and renewable power like solar and wind. The challenge is harnessing hydrogen as a gas on a large scale to fuel our homes and businesses.


When natural gas is burnt, it provides heat energy. But a waste product alongside water is carbon dioxide, which when released into the atmosphere contributes to climate change. Burning hydrogen does not release carbon dioxide.



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Yes. There are already cars that run on hydrogen fuel cells. China has the highest number of hydrogen fuelling stations for road vehicles worldwide, where you can fill up just as you would with petrol or diesel and in the same time frame as a traditional fuel car. Japan has the second highest number of these fuelling stations, followed by South Korea, Germany and the US.

The good news is that hydrogen can be transported through gas pipelines, minimising disruption and reducing the amount of expensive infrastructure needed to build a new hydrogen transmission network. There would also be no need for a culture change in our home lives, as people are used to using natural gas for cooking and heating, and hydrogen energy equivalents are emerging.

The Regional Clean Hydrogen Hubs Program (H2Hubs) includes up to $7 billion to establish six to 10 regional clean hydrogen hubs across America. Part of a larger $8 billion hydrogen hub program funded through the Bipartisan Infrastructure Law, the H2Hubs will form the foundation of a national clean hydrogen network that will contribute substantially to decarbonizing multiple sectors of the economy, like heavy industries (steel and cement production) and heavy-duty transportation. Learn more.

The Regional Clean Hydrogen Hubs will create networks of hydrogen producers, consumers, and local connective infrastructure to accelerate the use of hydrogen as a clean energy carrier that can deliver or store tremendous amounts of energy.

Matching the scale-up of clean hydrogen production to a growing regional demand is a key pathway to achieving large-scale, commercially viable hydrogen ecosystems. The H2Hubs will enable this pathway by demonstrating low-carbon intensity and economically viable hydrogen-based energy ecosystems that can replace existing carbon-intensive processes.

Hydrogen and hydrogen-based fuels can play an important role in the decarbonisation of sectors where emissions are hard to abate and alternative solutions are either unavailable or difficult to implement, such as heavy industry and long-distance transport.

The announcements for new projects for the production of low-emission hydrogen keep growing, but only 5% have taken firm investment decisions due to uncertainties around the future evolution of demand, the lack of clarity about certification and regulation and the lack of infrastructure available to deliver hydrogen to end users. On the demand side, hydrogen demand keeps growing, but remains concentrated in traditional applications. Novel applications in heavy industry and long-distance transport account for less than 0.1% of hydrogen demand, whereas they account for one-third of global hydrogen demand by 2030 in the Net Zero Emissions by 2050 (NZE) Scenario. A growing number of countries are releasing national strategies and adopting concrete policies to support first movers. But the delays in the implementation of these policies and the lack of policies for demand creation are preventing the scale-up of low-emission hydrogen production and use.

To get on track with the NZE Scenario, accelerated policy action is required on creating demand for low-emission hydrogen and unlocking investment that can accelerate production scale-up and deployment of infrastructure.

In the NZE Scenario, the use of low-emission hydrogen and hydrogen-based fuels lead to modest reductions in CO2 emissions in 2030 compared to other key mitigation measures, such as the deployment of renewables, direct electrification and behavioural change. However, hydrogen and hydrogen-based fuels can play an important role in sectors where emissions are hard to abate and other mitigation measures may not be available or would be difficult to implement, namely heavy industry, long-distance transport, shipping and aviation. Hydrogen's total contribution is also larger in the longer term as hydrogen-based technologies mature.

Several demonstrations of key end uses for low-emission hydrogen and hydrogen-based fuels entered into operation in the past year in chemicals production, refining, high-temperature heating and shipping. Bringing these technologies to commercialisation as soon as possible will be critical to unlocking a significant fraction of demand in these new applications.

Getting on track with the NZE Scenario will require a step-change in demand creation, particularly in new applications. By 2030 hydrogen demand increases by more than 1.5 times to reach more than 150 Mt, with nearly 30% of that demand coming from new applications.

Hydrogen is today mostly produced and consumed in the same location, without the need for transport infrastructure. With demand for hydrogen increasing and the advent of new distributed uses, there is a need to develop hydrogen infrastructure that connects production and demand centres.

Not all steps of the low-emission hydrogen value chain are operating at commercial scale today. On the supply side, some technologies are already commercially available, such as alkaline and proton membrane exchange electrolysers. Other technologies, such as Solid Oxide Electrolysers (SOEC), are approaching commercialisation thanks to recent innovation efforts. In April 2023, a 2.6 MW SOEC electrolyser was installed in a Neste refinery in the Netherlands and just few weeks later, Bloom Energy installed a 4 MW SOEC system in a NASA research centre in California.

In parallel, governments are working on the establishment of regulatory frameworks and certification schemes. Australia is developing a voluntary scheme for Guarantee of Origin certificates. The European Commission adopted two delegated acts in February 2023 with rules to define renewable hydrogen, which will be in force once the Council and the Parliament approve them. France is working on the details of a certification schemes for the hydrogen categories defined in its Ordinance No. 2021-167. The United Kingdom released a Low-Carbon Hydrogen Standard in July 2022 and in February 2023 launched a consultation for a certification scheme. And the US Department of Energy proposed in September 2022 a Clean Hydrogen Production Standard and is working on the methodological details for its application in supportive schemes such as the IRA Clean Hydrogen Production Tax Credit.

However, the methodologies defined for these certification schemes are not necessarily aligned. This may become an important barrier as the investments that will lead to trade in low-emission hydrogen will rely on international recognition of standards and certificates.

Demand creation for low-emission hydrogen is lagging behind what is needed to put the world on track with the NZE Scenario. Carbon pricing can help to close the cost gap between low-emission hydrogen and its fossil-based competitors, but it is not enough. A wider adoption of carbon prices combined with other policy instruments such as auctions, mandates, quotas and hydrogen-specific requirements in public procurement can help industry de-risk investment and improve the economic feasibility of low-emission hydrogen.

Stimulating demand can prompt investment in these areas, but without further policy action, this process will not happen at the pace necessary to meet climate goals. Providing tailor-made support to selected, shovel-ready flagship projects can kick-start the scaling-up of low-emission hydrogen and the development of infrastructure and manufacturing capacity from which later projects can benefit.

There is an urgent need to demonstrate key hydrogen technologies to make sure that they reach commercialisation as soon as possible and are ready to deliver CO2 emission savings at scale by 2030. Unlocking the full potential demand for hydrogen will require strong demonstration efforts over the next decade in hydrogen end-use applications in heavy industry, long-distance road transport, aviation and shipping.

The adoption of low-emission hydrogen as a clean energy vector presents technology challenges. First movers will face risks due to a lack of knowledge and market uncertainty; however, completing demonstration projects to gain operational experience and develop in-house know-how can position them ahead of their competitors at the moment when deployment of the technology scales up.

The global hydrogen economy is growing despite global headwinds resulting from rising interest rates and constrained supply chains, according to an analysis of over 1,400 large hydrogen projects published today by the Hydrogen Council.

Alongside the vital climate benefits and cost-efficiency gains, a truly global hydrogen economy can provide meaningful contributions to the UN Sustainable Development Goals (SDGs) both in emerging markets and in developed countries, fostering just transition, boosting sustainable growth, and providing clean jobs.

The EU strategy on hydrogen (COM/2020/301) was adopted in 2020 and suggested policy action points in 5 areas: investment support; support production and demand; creating a hydrogen market and infrastructure; research and cooperation and international cooperation

Since, the Fit-for-55 package (July 2021) has put forward a number of legislative proposals that translate the European hydrogen strategy into concrete European hydrogen policy framework. This includes proposals to set targets for the uptake of renewable hydrogen in industry and transport by 2030. It also includes the Hydrogen and decarbonised gas market package (COM/2021/803 final and COM/2021/804 final), which puts forward proposals to support the creation of optimum and dedicated infrastructure for hydrogen, as well as an efficient hydrogen market. 17dc91bb1f

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