Pathways to decarbonization | Hydrogen
Clean hydrogen provides a crucial pathway to help decarbonize hard-to-abate sectors, making it important to accelerate its deployment across industries.
Despite hydrogen’s potential to help decarbonize the energy system, much work remains to ramp up its production. In this installment of our Pathways to decarbonization series, we look at the ways in which hydrogen can help accelerate the net-zero transition for high-emitting and hard-to-abate sectors.
The state of play
Although green hydrogen has the potential to enable the decarbonization of our energy system, the global clean hydrogen projects currently slated would collectively produce only 44 MtH2eq by 2030, a quarter of predicted global demand. Although more than 130 countries (representing 88% of global carbon emissions) have published national hydrogen strategies, accelerating the deployment of clean hydrogen will still require the development of a viable business case, the creation of a foundation for climate-oriented market structuring, and a focus on building long-term resilience.
The way forward
There are several steps the industry can start taking to help achieve net-zero emissions, such as replacing existing grey hydrogen production with green or blue hydrogen; using hydrogen as energy in addition to feedstock; and making green hydrogen more financially advantageous relative to grey alternatives.
To achieve these aims, the hydrogen industry can begin by fostering consolidated voluntary demand, championing the development of synchronized global regulations, supporting the maturation of required technologies, heightening focus on asset reuse and infrastructure, and engaging in cross-industry collaboration.
Read the full report to learn more about Deloitte’s recommendations.
About Pathways to decarbonization
The Pathways to decarbonization series is a collection of insights on the challenges, opportunities, and viable decarbonization pathways for high-emitting and hard-to-abate sectors. Each of the sector perspectives offers a foundational starting point for leaders who would like to better understand the landscape across these critical sectors.
Explore “Recommendations” below for more in-depth hydrogen and other related reports.
References:
- IEA, World Energy Outlook 2022, October 2022.
