The Future of Hydrogen 2019

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The Future of Hydrogen 2019 ( the-future-hydrogen-2019 )

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The Future of Hydrogen Executive summary The IEA has identified four near-term opportunities to boost hydrogen on the path towards its clean, widespread use. Focusing on these real-world springboards could help hydrogen achieve the necessary scale to bring down costs and reduce risks for governments and the private sector. While each opportunity has a distinct purpose, all four also mutually reinforce one another. 1. Make industrial ports the nerve centres for scaling up the use of clean hydrogen. Today, much of the refining and chemicals production that uses hydrogen based on fossil fuels is already concentrated in coastal industrial zones around the world, such as the North Sea in Europe, the Gulf Coast in NorthAmerica and southeastern China. Encouraging these plants to shift to cleaner hydrogen production would drive down overall costs. These large sources of hydrogen supply can also fuel ships and trucks serving the ports and power other nearby industrial facilities like steel plants. 2. Build on existing infrastructure, such as millions of kilometres of natural gas pipelines. Introducing clean hydrogen to replace just 5% of the volume of countries’ natural gas supplies would significantly boost demand for hydrogen and drive down costs. 3. Expand hydrogen in transport through fleets, freight and corridors. Powering high- mileage cars, trucks and buses to carry passengers and goods along popular routes can make fuel-cell vehicles more competitive. 4. Launch the hydrogen trade’s first international shipping routes. Lessons from the successful growth of the global LNG market can be leveraged. International hydrogen trade needs to start soon if it is to make an impact on the global energy system. International co-operation is vital to accelerate the growth of versatile, clean hydrogen around the world. If governments work to scale up hydrogen in a co-ordinated way, it can help to spur investments in factories and infrastructure that will bring down costs and enable the sharing of knowledge and best practices. Trade in hydrogen will benefit from common international standards. As the global energy organisation that covers all fuels and all technologies, the IEA will continue to provide rigorous analysis and policy advice to support international co-operation and to conduct effective tracking of progress in the years ahead. As a roadmap for the future, we are offering seven key recommendations to help governments, companies and others to seize this chance to enable clean hydrogen to fulfil its long-term potential. PAGE | 15 IEA. All rights reserved.

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