- May 21, 2021 1:19 pm GMT
Low-carbon hydrogen has a tiny share of the global energy market today. Investors, though, are betting on the long-term potential of this super-versatile energy carrier and role it can play low carbon energy transition.
- A dramatic policy shift towards net-zero, in China, Japan and Canada has lit the fuse
- Economic case is coming together; hydrogen will be competitive with fossil fuels by 2030 (US$30/MWh)
- Supply is increasing; The project pipeline increase from 3.5 GW last year to 26 GW this year. Need to increase 1000 GW by 2050 (a staggering US$1.0 trillion in investments)
- The biggest risk for the investors is that demand is disappointing, the existing market (99%) is energy intensive focused on limited industrial sectors.
Green Hydrogen isn’t going to be an overnight sensation or the ‘new oil’ anytime soon. But it will play a significant role in the energy transition, meeting 7% of global final energy demand by 2050. The biggest risk for investors is that demand disappoints.
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