Projects Lag Far Behind Hydrogen Hype

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The hype around hydrogen continues to intensify, with significant buzz coming from the recent COP27 climate summit in Egypt. But actual projects remain scarce. While schemes with hundreds of gigawatts of electrolysis capacity have been announced globally, only 200 megawatts of new capacity were deployed last year, and total low-carbon hydrogen production was less than 1 million tons in 2021 — almost all from fossil fuels with carbon capture and storage (CCS), according to the International Energy Agency (IEA). Based on announced and planned projects, the IEA expects global low-emission or renewables-based hydrogen production to reach just around 20 million tons by 2030, or one-fifth of today's hydrogen market, which is almost entirely served by carbon-intensive gray hydrogen from fossil fuels without CCS. In its most recent report focusing on Northwest Europe, the agency found that low-emission hydrogen production in that region could reach 6 million tons by 2030, with two-thirds supplied via electrolysis and the rest from gas with CCS. The IEA also notes that over 95% of projects are still in their early stages of development and would require policy support to progress.

Hydrogen, Low-Carbon Policy, Carbon Capture (CCS)
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