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The Future of Hydrogen Chapter 6: Policies to boost momentum in key value chains pricing systems. In the transport sector, 2030 deployment targets for fuel cell vehicles and hydrogen refuelling stations already play this role in several countries. Targets alone, however, will not be sufficient to develop an effective springboard for the four value chains over the next decade. The following sections examine these near-term value chains in turn, describing specific examples and targeted recommendations for each under the five policy categories set out above. These recommendations are aimed at helping various end-use sectors to embrace a switch to new cleaner fuels and feedstocks. For each value chain, policies that are technology neutral are preferable, but can be complemented by additional measures to support promising hydrogen technologies as they scale up towards cost-competitiveness. Taken together, the value chains offer a cost-effective, practical path toward ensuring that hydrogen in 2030 will be primed to play a potentially critical role in the longer-term global effort to achieve a clean, secure, resilient and cost-effective global energy system. In addition to the specific measures needed for each value chain, a number of measures are likely to be needed regardless of which hydrogen sources and applications are supported. These are presented in Table 12 and apply to all four value chains. There is no one-size-fits-all for hydrogen policy Individual countries will always base their policies and actions on the social and political priorities and constraints facing them, as well as resource availability and existing infrastructure. That is the case for all energy technologies and is certainly the case for hydrogen. Some countries may wish to prepare the ground for larger and cleaner future hydrogen products and markets by exploiting near-term opportunities based on fossil fuels and take a phased approach to shifting to low-carbon hydrogen. This approach might help enable scale-up in the near term. However, the limited environmental benefits of such an approach, or even negative environmental impacts, mean that a strategy to deploy CCUS or low-carbon hydrogen at a later stage is essential. Other countries may choose to build up hydrogen products and markets solely based on a chosen set of low-carbon sources, such as renewable electricity. In both cases, there may be opportunities to draw upon energy resources that are currently underutilised or used in lower-value applications today in ways that help manage near-term cost and risks (in Box 17). If it is possible to use these resources in high-value applications, such as transport or chemicals, it can raise the efficiency of the whole system. Whatever policy options different governments choose, however, their signals will be much stronger if their levels of ambition and timing are broadly aligned across different levels of government and internationally. Hydrogen producers and supply chains will need to be able to access financing based on an international outlook and the largest possible markets for scale- up. Box 17. Putting low-cost energy resources to higher-value uses As a chemical energy carrier, hydrogen can redirect both chemical and electrical energy into applications that are currently configured to use primarily chemical energy, such as transport. Four main sources of undervalued energy resources could be redirected to supply hydrogen refuelling stations, or other sources of demand for hydrogen and hydrogen carriers: PAGE | 173 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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