Clean Hydrogen Demand Projected To Increase

Hydrogen Demand on the Rise

Clean Hydrogen Demand Projected to Increase

The demand for clean hydrogen is projected to increase significantly in the coming decades. According to a report by the International Energy Agency (IEA), clean hydrogen demand could reach between 125 and 585 million tons per annum (Mtpa) by 2050. This represents a substantial increase from the current demand of around 95 Mtpa in 2022.

Fossil Fuel Dependence

Today, most hydrogen is produced from fossil fuels, such as natural gas and coal. This process emits large amounts of greenhouse gases, contributing to climate change. However, the increasing demand for clean hydrogen is driving the development of new technologies that can produce hydrogen without fossil fuels.

Key Findings from the IEA Report

The IEA report highlights the key findings that:

Global hydrogen use reached 95 Mt in 2022, a nearly 3% increase year-on-year.

The global hydrogen generation market size was estimated at USD 17014 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2023 to 2030.

Strong growth in all major consuming regions except Europe will contribute to the rising demand.

Implications for the Future

The increasing demand for clean hydrogen has significant implications for the future of energy. Hydrogen is a versatile fuel that can be used for a variety of purposes, including power generation, transportation, and heating. As the world transitions to a clean energy economy, hydrogen is expected to play a major role in meeting our energy needs.