The Global Demand for Hydrogen Is Increasing, but It Remains Too Expensive

By September 25, 2023 2   min read  (363 words)

September 25, 2023 |

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A recently published report revealed positive figures regarding the increase in projects for hydrogen production, but it warns about the lack of support and organization from the States to support investments.”

The International Energy Agency’s Global Energy Report revealed some important data about the future of hydrogen production as a source of clean energy

In general terms, the demand for hydrogen production is growing worldwide. In fact, compared to the report published in 2022, there was a 50% increase in the number of projects announced to work with hydrogen.

However, the outlook regarding the growth of this industry is still unclear. It is estimated that by 2030, the production capacity would reach 35 million tons. The problem is that the announced projects to generate it still lack the necessary investment.

There are two ways to produce hydrogen. One of them is from renewable energy sources, such as wind power turbines or solar panels. The second is from carbon capture, using fossil fuels.

The first technique is much more expensive than the second, and technologies that promise to reduce these costs are still in development. The second, although it has a smaller impact compared to other sources of energy, uses fossil fuels, something that should be drastically reduced by 2030.

According to the report, the production capacity for 2030 of the announced projects corresponds to 27 million tons based on electrolysis (the first technique) and 10 million tons with carbon capture based on fossil fuels.

Of these tons, only 4% corresponds to projects that already have secured investment. Meanwhile, 17 million tons are part of projects that are still in early stages and require support from the States to be carried out.

The International Energy Agency maintains that demand can continue to grow and that some countries, such as China, are making decisions to support investment in these projects. However, delays in implementation and the lack of necessary public policy structuring would be slowing down their progress.

In Colombia, there are several projects in early stages, with feasibility studies and some already operational, with which it is expected to meet the demand of countries like Germany.




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