Oct 2023
Hydrogen
Hydrogen is a versatile energy carrier, which can help to tackle various critical energy challenges. Hydrogen can be produced from almost all energy resources, though today’s use of hydrogen in oil refining and chemical production is mostly covered by hydrogen from fossil fuels, with significant associated CO2 emissions.
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Clean hydrogen, being produced from renewables, nuclear or fossil fuels with CCUS, can help to decarbonise a range of sectors, including long-haul transport, chemicals, iron and steel, where it is proven difficult to reduce emissions. Hydrogen can also help to improve air quality in cities and improve energy security. Hydrogen can also support the integration of variable renewables in the electricity system, being one of the very few options for storing electricity over days, weeks or months.
Today, hydrogen is mainly used in the refining and chemical sectors and produced from fossils, accounting for 6% of global natural gas use and 2% of coal consumption and being responsible for 830 MtCO2 of annual CO2 emissions. Scale-up will be critical to bring down the costs of technologies for producing and using clean hydrogen, such as electrolysers, fuel cells and hydrogen production with CCUS.
Today, hydrogen is mainly used in the refining and chemical sectors and produced from fossils, accounting for 6% of global natural gas use and 2% of coal consumption and being responsible for 830 MtCO2 of annual CO2 emissions. Scale-up will be critical to bring down the costs of technologies for producing and using clean hydrogen, such as electrolysers, fuel cells and hydrogen production with CCUS.
Last updated Oct 4, 2022
Key findings
Global hydrogen demand by sector in the Net Zero Scenario, 2019-2030
OpenGlobal hydrogen demand continues to grow but faster action is needed to reach Net Zero Emissions target by 2050
The momentum behind hydrogen remained strong over the past year. Nine countries – which cover around 30% of global energy sector emissions today – released their national strategies in 2021-2022.
On the supply side, electrolyser manufacturing capacity has doubled since last year, reaching nearly 8 GW per year; and the realisation of all the projects in the pipeline could lead to an installed electrolyser capacity of 134-240 GW by 2030, twice the expectations from last year.
Nonetheless, these laudable developments still are below what is needed to get on track with the Net Zero Emissions by 2050 Scenario. Faster action is required on creating demand for low-emission hydrogen and unlocking investment that can accelerate production scale up and deployment of infrastructure.
On the supply side, electrolyser manufacturing capacity has doubled since last year, reaching nearly 8 GW per year; and the realisation of all the projects in the pipeline could lead to an installed electrolyser capacity of 134-240 GW by 2030, twice the expectations from last year.
Nonetheless, these laudable developments still are below what is needed to get on track with the Net Zero Emissions by 2050 Scenario. Faster action is required on creating demand for low-emission hydrogen and unlocking investment that can accelerate production scale up and deployment of infrastructure.
Cumulative emissions reduction by mitigation measure in the Net Zero Scenario, 2021-2050
OpenHydrogen is an increasingly important piece of the net zero emissions by 2050 puzzle
The key pillars of decarbonising the global energy system are energy efficiency, behavioural change, electrification, renewables, hydrogen and hydrogen‐based fuels, and CCUS. The importance of hydrogen in the Net zero Emissions Scenario is reflected in its increasing share in cumulative emission reductions. Strong hydrogen demand growth and the adoption of cleaner technologies for its production thus enable hydrogen and hydrogen based fuels to avoid up to 60 Gt CO2 emissions in 2021-2050 in the Net zero Emissions Scenario, representing 6% of total cumulative emissions reductions.
Explore more data
Analysis
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Towards hydrogen definitions based on their emissions intensity
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Clean energy can help to ease the water crisis
Commentary — 22 March 2023
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Hydrogen Patents for a Clean Energy Future
A global trend analysis of innovation along hydrogen value chains
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How much will renewable hydrogen production drive demand for new renewable energy capacity by 2027?
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Northwest European Hydrogen Monitor
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Opportunities for Hydrogen Production with CCUS in China
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Hydrogen Supply
Subsector overview
More efforts needed
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Electrolysers
Technology deep dive
More efforts needed
Our work on Hydrogen
The Hydrogen TCP, founded in 1977, works to accelerate hydrogen implementation and widespread utilisation in the areas of production, storage, distribution, power, heating, mobility and industry. The Hydrogen TCP seeks to optimise environmental protection, improve energy security, transform global energy systems and grid management, and promote international economic development, as well as serving as the premier global resource for expertise in all aspects of hydrogen technology.
Related sectoral Technology Collaboration Programmes (TCP)
Events
Apr 2023
IEA Contributions to the G7 in 2023
15 Nov 2022 13:00—14:30
IEA at COP27: Scaling-up low carbon energies - Focus on nuclear and hydrogen
22 Sep 2022
