Full Title: Hydrogen: Closing the Cost Gap: Unlocking Demand for Clean Hydrogen by 2030
Author(s): Hydrogen Council
Publisher(s): Hydrogen Council
Publication Date: March 11, 2025
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Description (excerpt):
Demand for clean hydrogen and its derivatives has taken center stage for decision-makers in industry and government over the past years, where a focus has been on project bankability and catalyzing supply chain development. The lack of demand-side visibility, rising energy and material costs, and prolonged regulatory uncertainty have been key factors inhibiting investment in the sector, in some cases leading to project delays and cancellations.
At the same time, some regions have begun implementing measures that could support the business case for clean hydrogen adoption. While the regulatory landscape is still evolving, this report looks at the current policy landscape and its resulting impact on the uptake of clean hydrogen. Actual uptake by 2030 is still contingent on the timing and effectiveness of implementing these policy mechanisms and is therefore subject to change.
This analysis considers the feasibility of serving existing and new sub-segments of hydrogen demand with clean hydrogen by 2030 in the EU, East Asia, and the US. These regions were selected due to the prominence and the early momentum of clean hydrogen policy initiatives and infrastructure development effective as of January 1, 2025.
Based on the potential total demand for hydrogen in these regions across all pathways, they categorize the millions of tons per annum (Mt p.a.) of demand into three segments, considering both the relative cost gap between clean hydrogen or its derivatives and conventional alternatives, as well as the extent of additional infrastructure needed for clean molecule deployment.