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The Future of Hydrogen Chapter 1: Introduction the report are listed in an annex to the report that is available to download from the IEA website. For ease of use, single values or mid-points are given in the text and figures in many places. In some cases, and in particular for less mature technologies, this approach does not reflect the full range of different values quoted by reliable experts in the field. To the extent possible, other considerations relating to social and political headwinds and tailwinds are highlighted and material provided on the IEA website for readers to explore sensitivity analyses. For the purposes of illustration, this report presents examples of costs and levels of demand at three different times: today (with 2018 as the base year), 2030, and the long term (the period after 2030). For future time periods, fuel prices, levels of demand and other parameters are extracted from recent IEA global energy system modelling exercises. Where current trends to 2030 are referenced, these are in line with the New Policies Scenario of the IEA World Energy Outlook 2018 (IEA, 2018c). Where pathways compatible with the goals of the Paris Agreement on climate change are referenced, these are in line with the Sustainable Development Scenario (SDS) of the IEA World Energy Outlook 2018. The SDS is fully aligned with the Paris Agreement’s goal of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C, as well as with the achievement of the United Nations Sustainable Development Goals on universal access to energy and reducing the severe health impacts of air pollution. Hydrogen and energy: A primer How is hydrogen produced and used today? This report identifies around 70 million tonnes (Mt) of current demand worldwide for “pure” hydrogen, with “pure” meaning that the specific applications require hydrogen with only small levels of additives or contaminants tolerated (Figure 6). The main applications for this hydrogen are oil refining and ammonia production, mainly for fertilisers. A further 45 Mt of demand exists for hydrogen as part of a mixture of gases, such as synthesis gas, for fuel or feedstock. The main applications for hydrogen as part of a mixture of gases are methanol production and steel production. While one-third of hydrogen demand today is for transport sector applications in a broad sense – in refineries and for methanol used in vehicle fuel – less than 0.01 Mt per year of pure hydrogen (less than 0.03 Mtoe) is used in FCEVs, most of which is derived from natural gas. The overwhelming majority of hydrogen produced today is from fossil fuels, and around 60% of it is produced in “dedicated” hydrogen production facilities, meaning that hydrogen is their primary product. Most of this is produced from natural gas, though some comes from coal, and a small fraction comes from water electrolysis (a process that produces hydrogen from water and electricity). One-third of global supply is “by-product” hydrogen, meaning that it comes from facilities and processes designed primarily to produce something else. This by-product hydrogen often needs dehydrating or other types of cleaning, and can then be sent to a variety of hydrogen-using processes and facilities. Most hydrogen is currently produced near to its end use, using resources extracted in the same country. PAGE | 31 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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