The Rise of Green Hydrogen in Energy Transition

The Rise of Green Hydrogen in Energy Transition

By
Elena Vardanian
1 min read

The rise of green hydrogen is positioning itself to be the 'new oil' that drives the global economy, as countries and companies make strategic moves to prepare for the future. The quest to achieve net zero emissions by 2050 is fueling interest in clean hydrogen as a solution to decarbonize challenging sectors such as steel, chemicals, and shipping. The market for green hydrogen is projected to grow from $1 billion to $30 billion by 2030, driven by plummeting renewable energy prices and advancements in electrolysis technology. However, the lack of transportation and storage infrastructure presents a barrier, prompting partnerships to build economies of scale. The advantages of hydrogen lie in its abundance, renewable nature, and non-polluting properties, despite the current high production, transportation, and storage costs. International efforts are underway to scale up and meet the escalating demand. Companies are exploring innovative solutions such as green ammonia as an interim step for hard-to-decarbonize industries. The widespread adoption of ammonia fuel is projected to make up 25% of the maritime fuel mix by 2050. Meanwhile, the steel industry is pursuing the production of steel using green hydrogen, signaling a transformation in production processes. Manufacturers could significantly reduce production costs and emissions with the potential of green hydrogen, making it a compelling solution in a competitive global economy. The international push for green hydrogen reflects the weight it could potentially carry as a dominant energy source in the 21st century.

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