Pathways towards a clean environment
For hydrogen to contribute to climate neutrality, it must become fully decarbonised.
Since the bulk (approx. 95%) of the > 70 million tons of hydrogen produced annually are still generated from fossil fuels, hydrogen contributes with roughly 830 million tons of CO₂ per year to the carbon dioxide emissions.
As of today, hydrogen is mainly used for the ammonia production (fertilizers) and for oil refining. Since the world population is growing, ammonia demand is growing.
Other hydrogen applications such as methanol production, power generation and transportation contribute to the expected substantial growth of the H₂ production market.
Based on various sources, the hydrogen generation market is supposed to grow from approx. USD120 billion today to above USD200 billion over the next 5 years.
The major factors driving this development include the growing demand to decarbonize energy end-use, government regulations for refinery activities and an increased demand for hydrogen in the transportation sector.
The rapid cost decline of renewable energy and the urgency to drastically reduce greenhouse emissions, especially provide a base for the green hydrogen production industry to blossom.
Various national hydrogen strategies have been put in place to support this.