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The Future of Hydrogen Chapter 6: Policies to boost momentum in key value chains Four key value chains These four value chains together represent a major opportunity to build a 2030 springboard for hydrogen to fulfil its longer-term potential (Table 11). They are combinations of hydrogen supply and demand that emerge from the analysis in Chapters 2 to 5, focusing on lower-cost and nearer-term opportunities that build on existing policies, infrastructure, skills, geographical advantage and demand for hydrogen. This approach minimises risk for governments and the private sector, while still achieving significant scale. Four value chains representing opportunities for scaling up hydrogen in the near term Table 11. 1 2 Existing gas infrastructure To scale up low-carbon hydrogen supply by tapping into dependable demand To kick-start international hydrogen trade for ultimate global low-carbon market North America, Europe Asia Pacific, Middle East, North Africa, Europe Value chain name Contribution to 2030 goals Focus regions Coastal industrial clusters To open gateways to lower-cost and lower- carbon hydrogen hubs Europe, China, Japan, Latin America, United States Fleets, freight and corridors To reach appropriate scale for competitive fuel cell vehicles and refuelling China, Japan, Korea, Europe, South Africa, United States 3 4 The first shipping routes Each of these value chains is described in more detail in this chapter, and their policy requirements identified. The four value chains are not independent, as developments in one will benefit the others in realising cost reductions and innovation. Furthermore, within the same region there could be opportunities to exploit synergies between them, for example for truck fleets operating between industrial clusters and along transport corridors. Reaping the cost benefits of economies of scale in hydrogen supply and distribution is likely to require the cumulative demand of several sectors in a region, not one application alone. For example, a growing hydrogen network for vehicle refuelling could help launch flexible low-carbon power generation. Success in each of the value chains will help provide the conditions for success in others. Five types of policy need to work together Regardless of which value chains individual governments wish to explore and develop, policy efforts will be needed with the aim of: 1. Establishing targets and/or long-term policy signals. 2. Supporting demand creation. 3. Mitigating investment risks. 4. Promoting R&D, strategic demonstration projects and knowledge sharing. 5. Harmonising standards, removing barriers. Targets and/or long-term policy signals are needed to provide stakeholders with certainty that there will be a future marketplace for hydrogen. Climate policies, in particular, will be crucial in this regard. Actions could include the putting in place of high-level instruments such as emissions reduction targets, or commitments to deploy certain energy resources or carbon PAGE | 172 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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