Global Hydrogen Review 2021
Dr. Timur Gül, Dr. Uwe Remme
15th IEEJ Global Energy Webinar, 18 November 2021

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From momentum to implementation• Hydrogen had many false starts but there are strong signals for the energy sector that this time could bedifferent – momentum is turning into action:- A growing number of governments is defining the role of hydrogen in their energy strategies- Industry is moving to seize the opportunity and is increasing hydrogen-related investments- International cooperation has taken centre stage• Many factors are at play that may explain the momentum; efforts to mitigate climate change and thegrowing number of net zero commitments are important factors• The future for hydrogen looks bright but whether on-the-ground progress is fast enough and going in thedirection required for hydrogen to play its part in addressing climate change is a key question

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Hydrogen is an important contributor to a net-zero energy system

Mt H₂

Global demand for hydrogen by sector in the NZE, 2020-2050
600500

Grid injection
Buildings

400

Synfuels
Ammonia300

Power200

Transport
Industry100

Refining02020

2025

2030

2035

2040

2045

2050

In the NZE, hydrogen demand grows sixfold by 2050, with a critical role in particular in sectors such as industry andlong distance transport
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New uses for hydrogen are unlocking demand

Refining
Chemicals(conventional)
Iron and steel(conventional)
New uses

Under current trends, 2030

With government pledges, 2030

105 Mt of hydrogen

120 Mt of hydrogen

Buildings
Ammonia fuelPowerTransport
Chemicals
Iron and steel

Refining

Grid injection
Buildings
Synfuels
Ammonia fuelChemicals(conventional)

PowerIron and steel(conventional)

Transport

New uses

Chemicals
Iron and steel

The use of hydrogen is slowly expanding into new areas, but an expansion at the scale needed for net-zero emissions
by 2050 will require more ambitious and concrete policy efforts
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The dawn of low-carbon hydrogen production
Low-carbon production from announced projects, 2030

100Electrolysis

Fossil with CCUS

8060

8866442200

Low-carbon
By-product

4010Mt H2

10Mt H2Mt H2Hydrogen production, 2020

Fossil20Rest of the World
China
Middle EastUSACanadaLatin America
AustraliaEurope0Announced projects to produce low-carbon hydrogen are growing quickly, particularly in Europe, Australia, Canada,
the United States and the Middle East. Around 17 Mt of low-carbon hydrogen could be produced by 2030
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Low-carbon hydrogen costs are falling
Hydrogen production cost from hybrid solar PV and wind systems in the NZE, 2030

Ambitious policy for deployment can make hydrogen from electrolysis competitive with hydrogen from fossil fuels
within this decade
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The first steps for international hydrogen trade have been taken
Selected international hydrogen trade projects

Exporting location

Ammonia,
2020LOHC,
2020 Liquefiedhydrogen,Q1 - 2022

Importing location

A global hydrogen market can help countries with limited domestic production potential and provide export
opportunities for countries with good renewable resources or large CO2 storage potential.
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IEA policy recommendations• Develop strategies and roadmaps on the role of hydrogen in energy systems• Create incentives for using low-carbon hydrogen to displace unabated fossil fuels• Mobilise investment in production, infrastructure and factories• Provide strong innovation support to ensure critical technologies reach commercialisation soon
• Establish appropriate certification, standardisation and regulation regimes

IEA 2021. All rights reserved.

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IEA 2021. All rights reserved.

Page 9Contact:report@tky.ieej.or.jp