PARIS: Governments must step up investments in hydrogen production and storage chains to help reduce net emissions to zero, the International Energy Agency (IEA) said on Monday.
States and private investors had so far provided only about a quarter of the $ 1.2 trillion needed by 2030 to develop and deploy hydrogen and integrate it into global net zero strategies, said the organization based in Paris.
Efforts should be focused on introducing hydrogen into more sectors and developing technologies to make it cheaper to produce with renewable energy, his report added.
Hydrogen is lightweight, storable, and energy dense, and produces no direct emissions of pollutants or greenhouse gases when used as a fuel. But the cost of production and concerns about how it’s produced have been a barrier to increased use.
Hydrogen produced from renewable supplies can cost between two and seven times more than its production from natural gas without carbon capture, according to the report. New technologies and economies of scale could help close the gap, he added.
“Almost all of the hydrogen produced today comes from fossil fuels without carbon capture, resulting in almost 900 million tonnes of CO2 emissions, the equivalent of the combined CO2 emissions of the UK and the UK. ‘Indonesia,’ the IEA said.
The global capacity of electrolysers, which produce hydrogen from water using electricity, has doubled over the past five years, and nearly 400 projects are under development or in early stages of development, according to the report.
These projects are expected to increase the hydrogen supply to 8 million tonnes per year by 2030, up from less than 50,000 tonnes in 2021. But that was still a tenth of what was needed by 2030 to achieve zero emissions. net by 2050, they said.
Almost all of the hydrogen consumption was in the refining and industrial sectors in 2020, according to the report. But it could also play a major role in chemicals, steel, transport and aviation – all sectors where reducing emissions is currently a challenge.
Government policies currently focus on production but must integrate consumption into new sectors to encourage the construction of the necessary storage, transmission and recharging facilities, according to the report.
Currently, 17 governments have hydrogen strategies, and more than 20 others have announced they are making plans, up from three countries in 2019, the agency said.