Green hydrogen: Energizing the path to net zero

Deloitte Global’s outlook, based on the Hydrogen Pathway Explorer (HyPE) model, explores the emergence of a carbon-neutral, inclusive green hydrogen economy in the coming years. It showcases a steady market growth, from US$642 billion in annual revenue in 2030 to US$1.4 trillion per year in 2050, a recognized milestone to reach net-zero targets.

This analysis reveals an opportunity for private and public leaders to accelerate the green en ergy transition and abate up to 85 GtCO2eq in cumulative emissions by 2050.

Trade is key to unlocking the potential of the clean hydrogen market, supported by expanded transport infrastructure. The outlook shows that in 2050, trade between major regions could generate more than US$280 billion in annual export revenues. The most common products are hydrogen derivatives—ammonia, methanol, and SAF—which are easier to transport over long distances.

By 2050, the main recipients include North Africa (US$110 billion per year), North America (US$63 billion), Australia (US$39 billion), and the Middle East (US$20 billion). 

Expanded trade can significantly reduce costs, improve energy security, and foster economic development in developing and emerging markets. Export revenues from green hydrogen can bring economic development opportunities to developing countries.

Deloitte Global’s outlook estimates more than US$9 trillion of cumulative investments are required in the global green hydrogen supply chain to meet net-zero compliance by 2050, including US$3.1 trillion in developing economies. 

Within developing markets, it could support up to 1.5 million jobs per year worldwide between 2030 and 2050, and the benefits are not limited to developed economies. At the global scale, clean hydrogen could support up to 2 million jobs per year between 2030 and 2050. The impacts can be significant to environmental, economic, and social prosperity. 

Support is essential to help scale up the clean hydrogen economy and ensure that, especially, green hydrogen plays its needed role on the path to the energy transition. 

Establishing a resilient market focused on climate adaptation and supported by favorable strategies, can be accelerated by targeted instruments to help reduce the cost-difference between green and non-renewable technologies, giving a push to clean hydrogen while ensuring long-term resilience. This can simplify the green hydrogen supply chain and promote a market through international cooperation. 

Attention should focus on three components:

• Laying the foundations for a climate -oriented market.
• Creating a business case.
• Ensuring long-term resilience.