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Hydrogen Market Report July 2022

Jul 27, 2022 1 Min

Recently, natural disasters increased rapidly due to the climate change. Thus, as a climate change warning, we are losing the sustainability of the current energy order as well.

For the new research outcomes and European Union Strategies, Hydrogen is regarded as the fuel of the future. It is seen that it has the potential for helping the world to eliminate its reliance on fossil fuels and thus targets to achieve net-zero emissions become feasible. With regulators and policymakers worldwide shifting toward decarbonization, hydrogen is receiving unprecedented attention. Already over 30 countries released their hydrogen roadmaps by the beginning of 2022.

This report provides an overview of recent developments in the hydrogen ecosystem. In this article, the various types of hydrogen, future market forecasts, opportunities as well as threats and country strategies are examined respectively to present a summary of today’s situation.

Hydrogen Opportunities:

◽ When different research results are compared, it is clear that the hydrogen market will grow. Though this varies depending on the type of hydrogen. The International Energy Agency (IEA) predicts 500 million tons of hydrogen production by 2050.

◽ Some countries are expected to ban the use of fossil fuels in vehicles, increasing the use of hydrogen in road transportation. By 2050, the demand for hydrogen in road transport is expected to be 112 Mt.

◽ Only one country (Japan) had a national hydrogen strategy in 2017. According to a new International Renewable Energy Agency analysis, cross-border hydrogen trade will grow significantly, with more than 30 countries and regions planning active trading today.

◽ China is the world’s largest producer and consumer of hydrogen, with an annual consumption of more than 24 million tons. The country has the world’s third largest fuel cell electric vehicle (FCEV) fleet and is working on the development of fuel cell trucks and buses.

◽ Green hydrogen is currently more expensive than gray hydrogen, but the price of green hydrogen is expected to fall significantly over the next ten years.

◽As a result of the situation today in Ukraine, the cost of blue and gray hydrogen has increased, bringing green hydrogen to a more competitive point.

Hydrogen Threats:

◽ In most of applications and locations, low-carbon hydrogen has currently not a cost competitiveness with other energy sources.

◽ The “hydrogen economy” is still in its early stages. It faces a “dilemma” between supply and demand, with neither having the safe volumes to help building the value chain.

◽While hydrogen technology makes a difference in many areas, it is regarded as a difficult solution for productization in terms of technology and cost.

Hydrogen Strategy of Europe:

The European Union has accelerated the transition to clean alternative energy sources to reduces its dependency on energy. Hydrogen is becoming a clean energy alternative by playing an important role in achieving the EU goals of reducing greenhouse gas emissions target by a minimum of 55% by 2030 (Fitfor55) and achieving net-zero emissions by 2050.

Hydrogen Outlook of Turkey:

Turkey has an advantage in this regard because the country has a high share of solar, hydro, and wind-based renewable energy production. Despite the fact that Turkey is still in the early stages of developing the hydrogen market, it intends to significantly increase its production capacity in the coming years. It is planned to export clean hydrogen to other European destinations as production increases.

Download the full report here:

Hydrogen Market Report July 2022

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