A new report series released by the International Renewable Energy Agency sees hydrogen trade significantly contributing to a more diversified and resilient energy system. IRENA said “Global hydrogen trade to meet the 1.5 degree Celcius climate goal’ shows the importance of the future hydrogen trade. Trade allows countries to tap into affordable hydrogen as the scale of projects progresses and technology matures. One quarter of the global hydrogen demand could be satisfied by international trade through pipelines and ships. With falling costs of renewables and the hydrogen potential exceeding global energy demand by 20-fold, three-quarters of global hydrogen would still be produced and used locally in 2050. This is a significant change from today’s oil market where the bulk is internationally traded.”IRENA’s World Energy Transitions Outlook sees hydrogen covering 12% of global energy demand and cutting 10 per cent of CO2 emissions by 2050. Yet, hydrogen can only be a viable climate solution if the power needed to produce it comes in addition to the electrification of the energy system, placing an even greater uptake of renewable power at the heart of the transition. The new reports see half of the hydrogen being traded through largely existing, repurposed gas pipelines drastically reducing the costs of transport. Shipping of green ammonia would account for most of the other half, largely intercontinental hydrogen trade.As hydrogen becomes an increasingly internationally traded commodity, the hydrogen sector will attract growing sums of investment. Satisfying the global demand requires investment of almost USD 4 trillion by 2050. Net zero-aligned finance instruments will have to leverage the investment needed.
A new report series released by the International Renewable Energy Agency sees hydrogen trade significantly contributing to a more diversified and resilient energy system. IRENA said “Global hydrogen trade to meet the 1.5 degree Celcius climate goal’ shows the importance of the future hydrogen trade. Trade allows countries to tap into affordable hydrogen as the scale of projects progresses and technology matures. One quarter of the global hydrogen demand could be satisfied by international trade through pipelines and ships. With falling costs of renewables and the hydrogen potential exceeding global energy demand by 20-fold, three-quarters of global hydrogen would still be produced and used locally in 2050. This is a significant change from today’s oil market where the bulk is internationally traded.”IRENA’s World Energy Transitions Outlook sees hydrogen covering 12% of global energy demand and cutting 10 per cent of CO2 emissions by 2050. Yet, hydrogen can only be a viable climate solution if the power needed to produce it comes in addition to the electrification of the energy system, placing an even greater uptake of renewable power at the heart of the transition. The new reports see half of the hydrogen being traded through largely existing, repurposed gas pipelines drastically reducing the costs of transport. Shipping of green ammonia would account for most of the other half, largely intercontinental hydrogen trade.As hydrogen becomes an increasingly internationally traded commodity, the hydrogen sector will attract growing sums of investment. Satisfying the global demand requires investment of almost USD 4 trillion by 2050. Net zero-aligned finance instruments will have to leverage the investment needed.
