Half-hearted policies are holding back hydrogen ambitions

Hydrogen is being hailed as key to decarbonising the world’s energy systems, yet its urgent uptake is being hampered by sluggish, superficial policy intervention.

In Hydrogen Forecast to 2050, DNV predicts hydrogen uptake would need to triple to meet the targets of the Paris Agreement and fulfill 15% of energy demand by 2050. The amount of hydrogen in the energy mix is forecasted to be only 0.5% in 2030 and 5% by mid-century.

Sectors which cannot be electrified, such as aviation, maritime, and high-heat manufacturing, should be prioritised. In tandem, urgent support is needed to accelerate renewable power capacities and carbon capture and storage (CCS) deployment, crucial elements in producing low-carbon (green and blue) hydrogen. Scaling hydrogen value chains will require managing safety risk and public acceptance, as well as employing policies to make hydrogen projects competitive and bankable.

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