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Global demand for low-carbon hydrogen is predicted to rise steadily - although it accounted for less than one percent of the total hydrogen production in 2022 ( IEA ). By 2030 , demand increases are estimated to reach 150 Mt and 520 Mt in 2050 - but a lot will depend on the policy environment and other factors , according to a study by Cleantech Group . An estimated $ 80bn - $ 300bn will be required to build the global low-carbon hydrogen economy by 2030 .
Varieties of hydrogen
Hydrogen occurs in many forms , with each offering varied options and challenges . Naturally occurring hydrogen - dubbed ‘ gold ’ when found underground , and ‘ white ’ when identified in depleted oil wells - could be among the cheapest at less than $ 1 / kilogram .
‘ Turquoise ’ hydrogen , produced by methane pyrolysis , has the potential to be carbon negative and offers carbon black as a byproduct .
Green hydrogen , produced with renewable energy , is growing fast but poses challenges to scale up .
Companies with nuclear assets have the opportunity to produce ‘ pink ’ hydrogen using electrolysis , and ‘ purple ’ hydrogen with thermolysis .
Produced with at least 80 percent lower emissions than fossil fuels , low-carbon hydrogen costs up to three times more than alternatives , but robust policy support including direct financial incentives , can help it become competitive . Low-carbon hydrogen could gain a 14 percent share of global energy demand by 2050 , according to the IEA .
By 2030 , innovation - supplemented by subsidies - is expected to cut the cost of lowcarbon hydrogen production by 80 percent . Supportive policy environments in places like Australia , the US and the EU will help give an initial boost to building out the necessary infrastructure required .
Many countries are targeting a $ 1- $ 3 / kilogram goal , with higher carbon prices even enabling low-carbon hydrogen cost parity with fossil fuel equivalents in some geographies , such as the EU . Still , challenges abound , notably in building a global hydrogen economy .
To keep delivered costs of hydrogen down , local infrastructure will need to be retrofitted or re-purposed ( upgrading pipelines , using existing transport networks , etc .). Where this is impossible , production will need to be localized or centralized near its end use . An estimated 50 percent of the landed costs are due to transportation requirements .
The US DoE ’ s $ 8bn hydrogen hubs will advance key projects in the US , but other projects that are ready to be resourceful without the same funding can still succeed long-term . But while government support will be required for the initial boost of hydrogen much like it was for solar and wind , it will be sustained by the private sector .
For this to happen , project producers need to be realistic with their offtake capacity , improve cost transparency , and collaborate with other ecosystem players . This will help reduce some of the associated risks around new project development and ideally drive up the venture investment needed .
Technologies to produce low-carbon hydrogen are set to hit manufacturing lines en masse in 2024 . But delivering cost-competitive hydrogen will require a reduction in
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