Deloitte: Hydrogen Market Poised to Skyrocket to $1.4 Trillion by 2050

By June 9, 2023 2   min read  (292 words)

June 9, 2023 |

deloitte hydrogen market poised to skyrocket to 14 trillion by 2050

New research from Deloitte suggests that the global hydrogen market could more than double, reaching $1.4 trillion per year by 2050. This growth is expected to be driven primarily by green hydrogen, which is projected to account for 85% of the market by 2050.

The research estimates that global trade of hydrogen between major regions could yield over $280 billion in yearly export revenues. The principal beneficiaries of this trade are expected to be North Africa ($110 billion per year), North America ($63 billion), Australia ($39 billion), and the Middle East ($20 billion).

To reach the target of climate neutrality by 2050, the clean hydrogen market capacity may need to increase to 170 million tonnes (MtH2eq) in 2030 and to 600 MtH2eq in 2050. The report points out that government support may be necessary to make clean, and especially green, hydrogen cost-competitive.

Different hydrogen-derived products are predicted to reach a cost breakeven point at different times, with ammonia by 2030, gaseous hydrogen by 2035, methanol by 2045, and synthetic aviation fuel (SAF) by 2050.

The report predicts different timelines for various applications of green hydrogen to reach cost-competitiveness, with ammonia achieving breakeven by 2030, gaseous hydrogen by 2035, methanol by 2045, and synthetic aviation fuel by 2050.

Blue hydrogen, made from natural gas with carbon capture and storage, is seen as a potential tool for creating initial demand and facilitating the emergence of a hydrogen economy. However, the report indicates that the supply of clean hydrogen from announced projects worldwide might only reach 44 MtH2eq by 2030, which is a quarter of the projected demand.

The report concludes that achieving carbon neutrality will involve not just decarbonizing the current hydrogen supply, but also scaling it more than sixfold to accommodate new uses that are key to the energy transition.


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