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The Future of Hydrogen Executive summary cities. Investments in hydrogen can help foster new technological and industrial development in economies around the world, creating skilled jobs. Hydrogen can be used much more widely. Today, hydrogen is used mostly in oil refining and for the production of fertilisers. For it to make a significant contribution to clean energy transitions, it also needs to be adopted in sectors where it is almost completely absent at the moment, such as transport, buildings and power generation. However, clean, widespread use of hydrogen in global energy transitions faces several challenges: • Producing hydrogen from low-carbon energy is costly at the moment. IEA analysis finds that the cost of producing hydrogen from renewable electricity could fall 30% by 2030 as a result of declining costs of renewables and the scaling up of hydrogen production. Fuel cells, refuelling equipment and electrolysers (which produce hydrogen from electricity and water) can all benefit from mass manufacturing. • The development of hydrogen infrastructure is slow and holding back widespread adoption. Hydrogen prices for consumers are highly dependent on how many refuelling stations there are, how often they are used and how much hydrogen is delivered per day. Tackling this is likely to require planning and coordination that brings together national and local governments, industry and investors. • Hydrogen is almost entirely supplied from natural gas and coal today. Hydrogen is already with us at industrial scale all around the world, but its production is responsible for annual CO2 emissions equivalent to those of Indonesia and the United Kingdom combined. Harnessing this existing scale on the way to a clean energy future requires both the capture of CO2 from hydrogen production from fossil fuels and greater supplies of hydrogen from clean electricity. • Regulations currently limit the development of a clean hydrogen industry. Government and industry must work together to ensure existing regulations are not an unnecessary barrier to investment. Trade will benefit from common international standards for the safety of transporting and storing large volumes of hydrogen and for tracing the environmental impacts of different hydrogen supplies. PAGE | 14 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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