Green and blue hydrogen producers can break free of subsidies as soon as 2030: Deloitte
Consultancy's new report adds that four global regions will monopolise clean H2 exports up to mid-century
Producers of green and blue hydrogen might not need subsidies as soon as 2030, depending on the final product, according to a new report from global consultancy Deloitte.
Hydrogen: hype, hope and the hard truths around its role in the energy transition
As costs come down, Deloitte said, the so-called “breakeven point” — when projects can start becoming profitable without government support — will come in 2030 for ammonia, and 2035 for gaseous hydrogen.
In total, Deloitte expects global demand for hydrogen to reach 170 million tonnes by 2030 (up from around 100 million tonnes today), rising to 600 million tonnes by 2050, with revenues ballooning to $1.4trn by mid-century.
North Africa could have 44 million tonnes more hydrogen production than domestic demand by mid-century, followed by North America (24 million tonnes), Australia (16 million tonnes) and the Middle East (13 million tonnes).
Which sectors would use all this hydrogen?
Hydrogen demand is set to be dominated by industry (iron and steelmaking, chemicals, cement and high temperature heat) and heavy transport (shipping, aviation and heavy trucking), Deloitte said.
In total, the consultancy estimates that by 2050 around 78% of the global supply will be heading to industry and transport, taking 42% and 36% shares, respectively.
The remaining 22% — minus 1% going to the heating of buildings — will be used in the power sector for grid balancing and storage purposes.
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