HYDROGEN’S ROLE IN THE ENERGY TRANSITION

Madana Nallappan, EIC analyst, Asia Pacific region, discusses the emerging developments of hydrogen supply chains and the need for policy changes With the urgent need to meet climate targets and enhance energy security, hydrogen has emerged as a leading contender for the energy transition. Europe has been at the forefront of this development, particularly in countries such as the Netherlands, Germany, and the UK. Other regions such as Australasia, North and South America, and Asia have also shown significant interest, with a total of 26 countries, including the UK, having developed comprehensive hydrogen strategies, and more than 20 governments working on drafting national strategies. The global hydrogen project pipeline currently has more than 500 projects for hydrogen production, with a potential investment of over $400 billion (€377.6 billion) if all these materialise. More than 85% of these involve green hydrogen production. According to EIC data, the total global electrolyser capacity that is set to come online between 2022 and 2030 is around 364 GW, producing up to 54 million tonnes per annum (mtpa) of green hydrogen. In the last two years alone, over 346 GW worth of...