Unleashing the Full Potential of Low-Emissions Hydrogen: An IEA Report

Get ready for a groundbreaking read as we dive into the latest IEA report on low-emissions hydrogen. This comprehensive review explores how this innovative technology can revolutionize energy-intensive sectors. Join me as we unpack the challenges, opportunities, and government initiatives shaping the future of low-emissions hydrogen.

Rapid Expansion of Low-Emissions Hydrogen Projects

Explore the growing momentum behind low-emissions hydrogen projects and the global adoption of national hydrogen strategies.

Low-emissions hydrogen projects are on the rise, with announcements flooding in and over 40 countries developing national strategies for hydrogen. However, the slow roll-out of financial incentives and persistent cost pressures pose a challenge in bringing these projects to fruition.

While numerous projects have been announced, implemented capacity and volume of low-emissions hydrogen remain relatively low as developers seek government support before committing investments. According to the latest IEA report, low-emissions hydrogen currently contributes less than 1% to overall hydrogen production and usage.

Fun fact: Did you know that low-emissions hydrogen developments have the potential to reshape energy-intensive sectors such as chemicals, refining, and steel?

Overcoming Economic Hurdles and Rising Project Costs

Learn about the economic challenges posed by rising costs, inflation, and supply chain disruptions, and how they impede the progress of low-emissions hydrogen projects.

The global energy crisis, inflation, and supply chain disruptions have engendered increased project costs, followed by potential decline in long-term profitability for new low-emissions hydrogen initiatives.

Rising inflation and borrowing costs are particularly damaging to an industry that necessitates upfront expenditure on equipment manufacturing, construction, and installation. These factors create obstacles for developers seeking funding and limit the impact of government support.

Are financial obstacles jeopardizing the realization of potential low-emissions hydrogen projects?

Accelerating Electrolyser Deployment to Boost Production

Discover the accelerating deployment of electrolysis, its capacity expansion, and growth potential in enabling low-emissions hydrogen production.

Electrolyser deployment is gaining momentum, with capacity reaching approximately 700 MW by the end of 2022. Based on projects under construction or reaching final investment decisions, capacity is expected to triple to 2 GW by the end of 2023, with China leading the way.

Further projected expansion estimates suggest a potential achievement of 420 GW in total capacity by 2030 if all announced projects are realized—an impressive 75% increase from 2022, as reported by the IEA.

Did you know that electrolysers running on renewable energy hold enormous potential for decentralized and carbon-free hydrogen production?

Unlocking Low-Emissions Hydrogen's Demand Creation

Explore the lagging demand creation efforts and the limited application of low-emissions hydrogen in surpassing emissions targets.

Despite an increase of nearly 3% in global hydrogen use, low-emissions hydrogen applications remain limited, contributing only 0.6% to total demand. This accounts for low progress in achieving emissions reduction targets.

Economic setbacks such as the surge in natural gas prices and a lack of emphasis on fostering demand hinder widespread adoption. While government targets focus mainly on low-emissions hydrogen production, more emphasis should be placed on creating demand, including purchasing agreements with private sector consumers.

Can enhanced demand creation drive the transition to a low-emissions hydrogen economy?

Enabling Policies to Enhance Feasibility and Unlock Potential

Learn about the essential initiatives required from governments to reduce risk, improve the economic viability, and enable broader adoption of low-emissions hydrogen.

Effective delivery of support schemes, stimulating demand, and addressing market barriers such as licensing and permitting are vital steps to enhance the feasibility of low-emissions hydrogen.

International collaboration to develop common standards, regulations, and certifications is equally crucial for the establishment of international markets in hydrogen. Notable government funding programs, such as the US Clean Hydrogen Production Tax Credit, the EU's Important Projects of Common European Interest, and the UK's Low Carbon Hydrogen Business Model, will further incentivize investment.

Are governments prepared to take the necessary actions to unlock the full potential of low-emissions hydrogen?


Low-emissions hydrogen is witnessing significant momentum globally, with numerous projects announced and more than 40 countries developing national strategies for its adoption. However, financial incentives and persistent cost pressures remain as key determinants for successfully realizing these projects. Deploying electrolysers and accelerating their capacity expansion can play a crucial role in boosting low-emissions hydrogen production. Demand creation efforts, enhanced by government initiatives, must be prioritized to expedite the transition towards a low-emissions hydrogen economy. By addressing economic challenges, enabling policies, and fostering collaboration, countries can unlock the full potential of this transformative technology for a more sustainable future.


What are the major hurdles for low-emissions hydrogen projects?

The major hurdles for low-emissions hydrogen projects include the slow roll-out of financial incentives, rising project costs driven by inflation and supply chain disruptions.

Which industry sectors can benefit the most from low-emissions hydrogen?

Energy-intensive sectors such as chemicals, refining, and steel can greatly benefit from the adoption of low-emissions hydrogen to reduce carbon emissions in their operations.

How can governments support the growth of low-emissions hydrogen?

Governments can support the growth of low-emissions hydrogen through effective delivery of support schemes, stimulating demand, and addressing market barriers such as licensing and permitting. Funding programs and collaborations at an international level are also crucial for creating a conducive environment for investment.

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