Why Hydrogen?

In 2020, the demand for hydrogen was approximately 87 million tonnes (Mt), with projections indicating a potential increase to 580 Mt by 2050.

Currently, hydrogen plays a crucial role in oil refining and the production of ammonia and methanol. In the future, it is set to become a vital low-carbon, energy-dense fuel for transportation and manufacturing, as well as a key resource for electricity generation and storage.

Current uses of hydrogen

OilRefining

Fertiliser/ammoniaProduction

MethanolProduction

FoodProduction

Emerging uses of hydrogen

Transport

Power generationand storage

Factory andbuilding heading

Steel and cementProduction

Grey Hydrogen

Produced from natural gas, with hydrogen separated from methane (CH4), but without capturing the resulting carbon emissions.

9.0kg CO2e per kg H2#

White Hydrogen

Naturally occurring and found in underground deposits, this is the most cost-effective hydrogen to produce.

<1.0kg CO2e per kg H2*

Blue Hydrogen

Produced from natural gas, with hydrogen separated from methane (CH4), and the carbon emissions are captured.

3.0kg CO2e per kg H2#

Green Hydrogen

Produced by using renewable energy to electrolyse water. H2 is separated from H2O. Production is expensive.

<1.0 kg CO2e per kg H2#

*Geologic hydrogen has a carbon intensity of 0.37 kg CO2e per kilogram of hydrogen, accounting for the embodied emissions of the well casing and hydrogen emissions, as detailed in a published paper in Joule by Stanford’s Dr. Adam Brandt.

Adapted from https://koloma.com/geologic-hydrogen/. Values sourced from the 2022 GREET Model. Carbon intensity for natural hydrogen production was calculated based on Brandt, A. (2023). Greenhouse Gas Intensity of Geologic Hydrogen Produced from Subsurface Deposits. EarthArXiv preprint. https://doi.org/10.31223/X5HM1N. The calculation aligns with the GREET methodology.https://shorturl.at/aehk3

The need for cleaner hydrogen is growing at an increasing pace.

The demand for clean hydrogen is anticipated to reach between 125 and 585 million tonnes annually by 2050.

Currently, nearly all hydrogen consumed—around 90 million tonnes per year—is grey hydrogen, produced via fossil fuel-based steam methane reforming.

However, the demand for grey hydrogen is expected to decrease as the demand for clean hydrogen increases. According to McKinsey, clean hydrogen could represent 73 to 100 percent of total hydrogen demand by 2050.

Post-2025, nearly all new hydrogen production is expected to be clean hydrogen.

Scenario descriptions

NET ZERO

Net zero commitments will be achieved by all countries by 2050, through the implementation of ambitious policies across various regions.

ACHIEVED COMMITMENTS

Leading countries achieve net zero commitments through deliberate policies, while others transition at a slower pace.

FURTHER ACCELERATION

Further acceleration of the transition is driven by country-specific commitments, although financial and technological constraints persist.

CURRENT TRAJECTORY

Current trajectory of renewables and electrolyzer costs decline continues. However, currently active policy remain insufficient to close gap to ambition.

FADING MOMENTUM

Delayed uptake of FCEV in road transport as well as uptake of alternative fuels in aviation drives lower hydrogen demand.

WHY NATURAL (WHITE) HYdROGEN?