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The Future of Hydrogen Chapter 4: Present and potential industrial uses of hydrogen Chapter 4: Present and potential industrial uses of hydrogen • Hydrogen use today is dominated by industrial applications. The top four single uses of hydrogen today (in both pure and mixed forms) are: oil refining (33%), ammonia production (27%), methanol production (11%) and steel production via the direct reduction of iron ore (3%). Virtually all of this hydrogen is supplied using fossil fuels. These existing uses of hydrogen underpin many aspects of the global economy and our daily lives. Their future growth depends on the evolution of demand for downstream products, notably refined fuels for transport, fertilisers for food production, and construction materials for buildings. • More than 60% of hydrogen used in refineries today is produced using natural gas. Tougher air pollutant standards could increase the use of hydrogen in refining by 7% to 41 MtH2/yr by 2030, although further policy changes to curb increases in oil demand could dampen the pace of growth. Current global refining capacity is generally thought sufficient to meet rising oil demand, which implies that the majority of future hydrogen demand is likely to arise from existing facilities already equipped with hydrogen production units. This suggests an opportunity for retrofitting CCUS as a suitable option to reduce related emissions. • Demand for ammonia and methanol is expected to increase over the short to medium term, with new capacity additions offering an important opportunity to scale up low-emissions hydrogen pathways. Greater efficiency can reduce overall levels of demand, but this will only partially offset demand growth. Whether via natural gas with CCUS or electrolysis, the technology is available to provide the additional hydrogen demand growth projected for ammonia and methanol (up 14MtH2/yr by 2030) in a low-carbon manner. As a priority, substituting low-emissions pathways for any further coal-based production without CCUS would significantly help cut emissions. • In the longer term, steel and high-temperature heat production offer vast potential for low- emissions hydrogen demand growth. Assuming that the technological challenges that currently inhibit the widespread adoption of hydrogen in these areas can be overcome, the key challenges will be reducing costs and scaling up. In the long term it should be technically possible to produce all primary steel with hydrogen, but this would require vast amounts of low- carbon electricity (around 2 500 TWh/yr, or around 10% of global electricity generation today) and would only be economic without policy support at very low electricity prices. PAGE | 89 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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