The heavy industry sector is expected to dominate global hydrogen demand by 2050, according to a new International Chamber of Shipping (ICS) report.
The ICS analysis Turning hydrogen demand into reality: Which sectors come first? identified hydrogen demand sectors, demand locations and the demand-pull timeline, focusing on the potential of clean hydrogen to function as an energy carrier and feedstock to decarbonise multiple sectors.
Clean hydrogen is expected to function as an energy carrier and feedstock to decarbonise multiple sectors, especially hard-to-abate sectors such as road transport, shipping and aviation sectors, although ICS expects heavy industry to be the main driver of demand in 2050.
However, current hydrogen demand scenarios show volatility, increasing uncertainty for businesses and investors. To meet 30 million tonnes of annual global green hydrogen demand, the world would require 411 new hydrogen vessels.
Guy Platten, ICS secretary general said: “For global hydrogen demand to keep the net-zero by 2050 scenario within reach, demand for hydrogen-based fuel sources would need to scale five times from current levels to reach approximately 500 million tonnes from 2030 to 2050. One of the main takeaways in this report is the high variability in potential demand. Industry will dominate the hydrogen demand. Shipping however can play a key role as an enabler to the hydrogen economy.”
The report highlights three economies as the main markets to initially drive hydrogen demand – South Korea, Japan and Europe. The EU, for instance, has a target of 20 million tonnes of hydrogen per year by 2030, with half of that volume to come from imported sources.
