BAKU, Azerbaijan, Dec.29
By Leman Zeynalova – Trend:
As the world moves towards cleaner energy, coupled with hydrogen’s potential in many other sectors, it is projected that the demand for hydrogen will increase by almost eight-fold to 550 million tonnes per year by 2050 compared to 70 million tonnes in 2020, Trend reports with reference to Malaysian Petronas company.
As such, hydrogen is a key component in Petronas’ commitment towards sustainability, said the company.
“By 2050, hydrogen production is expected to account for 10 percent of natural gas use and 25 percent of renewable additions, with the most rapid adoption of low-carbon hydrogen taking place in developed economies like Europe, Japan and South Korea. According to industry experts, hydrogen is forecasted to contribute up to 18 per cent of the global energy mix by 2050, eliminating 6 giga tonnes of CO₂ annually and requiring a total investment of USD11 trillion,” reads the report.
With much emphasis on decarbonisation goals, global hydrogen demand is forecasted to accelerate around 2030 driven by policy, technology, market competitiveness and cost reduction, according to Petronas.
“Prior to 2030, demand for clean hydrogen is expected to increase steadily as industries start to decarbonise their existing operations by switching to clean hydrogen. The versatility of hydrogen as fuel, heat source and feedstock allows for the demand to further grow and be used in many other sectors such as transport, industries and power generation. In this current nascent stage of the hydrogen industry, the demand for this molecule is mainly driven by country policies where decarbonisation agenda holds strong. Advanced countries are also seeking to diversify their energy source with alternative energy like hydrogen and seizing the potential growth in the green economy. To create a competitive global hydrogen supply chain, it will require cost reduction along its value chain, particularly in hydrogen production,” the company said.
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