Hydrogen to clean up energy with $10 trillion spend – study

The hydrogen market will result in one of the largest disruptions to the energy sector in history and will help decarbonise the landscape, thanks to an anticipated $10 trillion spend to be made through 2050.

This is according to a new report released by Rethink Energy, Hydrogen to clean up energy with $10 trillion spend.

In the report, Rethink Energy predicts an over 95% decrease in hydrogen cost by 2050 compared to 2020 levels.

The study explores trends within 21 countries and 14 industries and anticipates annual demand for hydrogen to hit 771 million globally by 2050 as the industry accelerates decarbonisation efforts.

Hydrogen will decarbonise 25% of energy consumption across the globe and will become the most cost-effective means of energy supply, according to the study.

The growth of the hydrogen market has already started evidenced by an increase in announcements of Gigawatt-scale projects and electrolyser developments in the past year. Green hydrogen is expected to undercut the cost of existing grey hydrogen supplies by 2026 worldwide, and many breakthroughs will be seen within the market in years to come, driven by increased support from investors and government policies, states the report.

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In addition, green hydrogen will replace oil and gas as well as create a new landscape for geopolitics and clean commodities trading, according to the study. The market will in turn provide new opportunities for developing economies that they can leverage to secure their energy supply and for economic growth.

Rethink Energy states that the hydrogen market will force changes within the steelmaking and cement production segments that have for centuries relied on fossil fuels to meet energy demand, a scenario that will help the industries to achieve net-zero emissions. The study states that the application of hydrogen in industries at a large scale will begin in 2024.

Within the aviation and maritime segments, hydrogen application at large-scale will start in the late 2020s, states the study.

In heating and power supply, again renewable electricity will play a leading role. But the need for gas-based approaches to several logistical challenges in these markets will see a material segment left needing green hydrogen to decarbonise. The sheer scale of the energy demand from these sectors will see them become two of the dominant users of hydrogen by 2050, according to the statement.