Hydrogen's Role in Global Energy Systems: Outlook and Challenges
Key Ideas
- Clean hydrogen is projected to have a growing role in global energy systems by 2050, with the demand expected to reach nearly 200 million tonnes of oil equivalent.
- Europe is a strong proponent of hydrogen for decarbonisation, but faces challenges due to energy affordability concerns, while North America is positioned as a potential hydrogen leader.
- In the more ambitious scenario, Bridges EP23, clean hydrogen is envisioned to become a cornerstone of global decarbonisation, with green hydrogen produced via electrolysis from renewable sources playing a significant role.
- The outlook emphasizes the complex role of hydrogen in the energy transition, essential for decarbonising hard-to-electrify sectors with evolving dynamics across regions.
Equinor's latest scenario outlooks suggest that clean hydrogen is set to have an expanding role in global energy systems by 2050, with its contribution contingent upon factors like decarbonisation pace, infrastructure development, and cost dynamics. In the Walls scenario, clean hydrogen demand is expected to rise significantly, albeit reaching only 2% of total final energy demand by mid-century due to high production costs and infrastructure challenges. While Europe is championing hydrogen for decarbonisation, issues around energy affordability hinder its progress. Comparatively, North America is poised to lead in hydrogen due to favorable natural gas prices and export potential. Asia-Pacific, particularly China, shows promise in becoming a significant hydrogen consumer by leveraging renewable resources. The more ambitious Bridges EP23 scenario envisions clean hydrogen as a key player in global decarbonisation, with green hydrogen surpassing fossil fuel-based hydrogen. Equinor's outlook underscores the importance of hydrogen in decarbonising challenging sectors, despite uncertainties in economics, technology, and policy.
Topics
Production
Renewable Energy
Infrastructure
Decarbonisation
Power Generation
Industry
Transport
Renewable Electricity
Global Energy
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