Hydrogen energy has a promising future and is considered one of the key pillars of the energy transition and carbon neutrality goals. The following is an analysis of the outlook for hydrogen energy:
- Global Carbon Neutrality Targets Drive Demand for Hydrogen Energy
In response to climate change, many countries and regions (including China, EU, Japan, South Korea, etc.) have set carbon neutral targets. Hydrogen energy has significant potential to reduce carbon emissions and enable clean energy alternatives due to its zero-emission nature.
Hydrogen energy is considered ideal for replacing high-emission energy sources (e.g. coal, oil, etc.) and is particularly suitable for areas that are difficult to decarbonise, such as heavy industry, iron and steel, chemicals and transport.
- Rapid development of green hydrogen
Green hydrogen is made by electrolysis of water from renewable energy sources (e.g. solar, wind) and does not emit carbon dioxide. With technological advances and declining costs of renewable energy, green hydrogen is gradually becoming more economical and is expected to replace traditional hydrogen production from fossil fuels.
Many countries are investing heavily in the development of green hydrogen technologies and production facilities. In the future, green hydrogen will play an important role in the global clean energy mix.
- Wide range of application scenarios
Industrial production: Hydrogen can be used to replace fossil fuels in industry, including coke in steel production, natural gas in oil refining process, etc., in order to reduce carbon emissions in industrial processes.
Transportation: Hydrogen fuel cells can be used in heavy-duty vehicles (e.g. trucks, trains, ships and aircraft) to solve the range and charging problems of battery electric vehicles in long-distance transport.
Electricity storage and peaking: Hydrogen can be used to convert excess wind and photovoltaic power into chemical energy storage, as a means of large-scale energy reserves to help stabilise the power grid.
- Technological advances and cost reductions
The cost of hydrogen energy is expected to decrease dramatically as hydrogen production, storage and transport technologies continue to advance. For example, the cost of equipment to produce hydrogen from electrolysed water and the cost of storing and transporting hydrogen are gradually declining.
With the advancement of large-scale production, the economy and competitiveness of hydrogen energy in multiple application scenarios will continue to improve.
- Energy storage and energy security
As a high-density energy storage medium, hydrogen energy has the ability to store energy for long periods of time, which helps the grid balance load fluctuations.
In the energy supply chain, hydrogen can be used as a stable energy reserve, effectively enhancing energy security, especially in countries that rely on imported energy, which is of strategic importance.
- Investment and policy support
Governments around the world have increased investment and policy support for hydrogen energy. For example, the European Union and the United States have invested heavily in hydrogen energy development programmes, and China has introduced several policies to encourage the development of the hydrogen energy industry.
Large energy companies, automakers, and engineering firms have also entered the hydrogen energy field to conduct technical research, infrastructure construction, and commercial application exploration.
- Market size forecast
The hydrogen energy market size is expected to grow significantly in the coming decades. The International Council for Hydrogen Energy estimates that by 2050, hydrogen energy could account for 18 per cent of global energy demand, with a market size in the trillions of dollars.
Hydrogen energy will form a complete ecosystem from production to consumption in the future, including the production, storage, transport and use of green hydrogen, with a promising market outlook.
Future trends and challenges
Despite its promising future, hydrogen energy still faces a number of challenges, including high production costs, inadequate infrastructure, and storage and transport challenges for hydrogen. However, with policy drivers, technological breakthroughs and increased investment, the cost of hydrogen energy will be gradually resolved.Under the general trend of cleaner global energy structure, hydrogen energy will become one of the important zero-carbon energy sources and promote green economic transformation.