IEEFA says more green hydrogen projects needed to meet 2030 demand

A report by the Institute for Energy Economics and Financial Analysis (IEEFA) shows the 50 viable green hydrogen projects announced in the last year cannot meet 2030 demand even if all are realised according to plan.

These 50 projects, most of which are at an early stage, have a total annual hydrogen production capacity of 4 million tonnes and a renewable power capacity of 50 GW. IEEFA puts the capital expenditure required at USD 75 billion (EUR 63.5bn). At the same time, the US-based think-tank says the global demand for green hydrogen is expected to reach 8.7 million tonnes a year by 2030.

Scaling up the manufacturing of electrolysers, fuel cells and associated equipment will be key for the success of new projects.

The list of viable projects analysed by IEEFA includes 14 facilities already under construction and 34 at a study or memorandum of understanding stage. There are only two operational plants, both in Asia and both pilot installations with capacities of less than 1,000 tonnes per year. Europe, Asia and Australia are most active in the green hydrogen field and Australia has the most ambitious hydrogen export plans.7

Most of the hydrogen projects the think-tank studied are seen to start in the middle of the 2020s, but the author of the report, Yong Por, says delays can be expected because of "uncertain financing, cumbersome joint venture structures, and unfavourable seaborne trade economics.”

Por also notes that more public-private efforts are needed to allow green hydrogen to overcome current obstacles. “Governments need to urgently back this industry by developing policy settings encouraging private industry to invest the much needed capital, given the industry must ‘learn by doing’,” the report author said.

See more of the IEEFA report here: https://ieefa.org/wp-content/uploads/2020/08/Asia_Australia_Europe-Lead-Green-Hydrogen-Economy_August-2020.pdf

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