KATHMANDU: Global output of green hydrogen is rising, but it still meets only a small part of demand. A new report from the International Energy Agency (IEA) shows the gap.
Green hydrogen is made by using renewable power to split water into hydrogen and oxygen. Production has increased six times in five years, thanks to new projects in China and Europe. Whereas, grey hydrogen comes from natural gas and releases carbon dioxide. Green is cleaner but costlier, while grey is cheaper but polluting.
The IEA says,green hydrogen output may reach 270,000 tons in 2025, up from 40,000 tons in 2021.
Even so, low-emission hydrogen, including blue hydrogen made from gas with carbon capture will reach only about 1 million tonnes this year. Global hydrogen use is around 100 million tonnes, mostly from fossil fuels.
Hydrogen is an important feedstock for oil refining and fertiliser. Replacing grey hydrogen with cleaner versions could cut almost 2% of world carbon emissions.
Investment is growing, the Hydrogen Council reports more than $110 billion pledged to over 500 projects. If all plans succeed, low-emission hydrogen could reach 37 million tonnes a year by 2030. But most projects are still at early stages. The IEA expects only about 4 million tonnes by then.
Strong policies will be key. EU rules say 42% of industrial hydrogen must be renewable by 2030. China wants wide use of clean hydrogen in heavy industry by 2027. Japan, South Korea and India are also planning to grow supply.
Clean hydrogen costs more than hydrogen from fossil fuels. But falling equipment prices and carbon taxes are helping. The IEA says green hydrogen in China could match gray hydrogen costs within five years.
Projects in shipping, steel and other industries are moving ahead. Demand could grow as prices drop. Experts warn the sector must expand much faster to cut emissions in a big way.
