As the utilities sector goes through the energy transition, the increasing use of zero-carbon fuels such as green hydrogen is likely to be a significant factor in the quest to decarbonise, it added.
The drive to tackle global warming through decarbonisation has picked up momentum in recent months, with net-zero targets announced by the UAE, Saudi Arabia, and Bahrain (2050), as well as China (2060), Japan, South Korea, and Canada (all 2050), and the Biden administration recommitting the US to the Paris Agreement.
Global demand for hydrogen currently stands at around 8–10 exajoules (EJ), most of which is consumed in the chemical sector. However, this figure looks set to grow, stated The Hydrogen Council in its report.
It shows that hydrogen can provide the lowest-cost decarbonisation solution for over a fifth of final energy demand by mid-century, while another estimate says that the world is going to need 1000 GW of electrolyser capacity by 2050 to meet demand forecasts.
Currently, approximately 95% of worldwide hydrogen production comes from fossil fuels, according to the International Renewable Energy Agency (IRENA).