![]() Firstly, numerical values that can be calculated directly for a specific production route provide transparency for potential investors and customers. The International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) has developed a standard methodology for calculating the GHG emissions intensity of different hydrogen production routes, which could improve transparency and facilitate market development.Īn internationally agreed methodology for calculating the emissions intensity of hydrogen production would have two major benefits. But if potential investors and consumers are not sure whether a certain production route will comply with emissions requirements across different countries or sectors, they may hesitate to commit. Multiple low-emission production routes exist, and their currently high costs are set to come down significantly with technology innovation and scale-up, just as we have seen with solar PV and batteries in the last 15 years. The lack of universal standards or international agreement hinders compliance with regulatory and market requirements. Projects for low-emission hydrogen are facing important bottlenecks For so-called “blue” hydrogen produced using natural gas with carbon capture, utilisation and storage (CCUS), our analysis shows that emissions per kg of hydrogen produced can vary substantially depending on the technology used and the capture rate. For example, many electrolysers are powered by grid electricity, for which emissions intensity can vary greatly depending on how it is generated, but no colour has been assigned. However, there are no agreed definitions for these terms, and they can obscure many different levels of potential emissions. ![]() Even more common is the use of colours, such as “grey”, “blue”, “pink”, or “green” hydrogen. There are, of course, many reasons behind these obstacles, but the absence of unified terminology is a major impediment to investment and potential trade.Īt present, several different terminologies are used to categorise hydrogen based on how it is produced, including “sustainable” or “clean”. Progress is lagging due to uncertainty about future demand, insufficient infrastructure to transport and deliver hydrogen to customers, and a lack of clarity on regulation and certification. More than 1 200 new projects to produce low-emission hydrogen have been announced to date, yet only 5% have received firm investment decisions, according to IEA analysis. Momentum around hydrogen continues to grow, but it has yet to fulfil its potential role in the clean energy transition To further this aim, the IEA in collaboration with the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) released a report for the G7 Climate, Energy and Environmental Ministerial meeting in April 2023, titled Towards hydrogen definitions based on their emissions intensity. There is an urgent need to create demand for low-emission hydrogen and to mobilise investment in production and supporting infrastructure. Yet despite these developments, hydrogen demand in 2022 rose around 3% to 95 Mt, with demand concentrated in the refining and industrial sectors, with very limited use in new applications such as industry and transport. Some countries envisage importing large volumes of hydrogen, whereas others are positioning themselves as future exporters in the nascent hydrogen market. At the end of 2022, a total of 28 governments had a hydrogen strategy in place, around one-third of which had been developed in the previous two years. ![]() Policy momentum behind hydrogen is certainly building. An internationally agreed methodology for calculating the emissions intensity of hydrogen production could cut financing costs, bring greater visibility for investors, and enable greater economies of scale. ![]() One major obstacle is that the existing terminology used to describe low-emission hydrogen varies among stakeholders and countries, which complicates trade and investment. Demand for hydrogen remains largely confined to a few traditional applications, and most of today’s hydrogen production is based on unabated fossil fuels, with production of low-emission hydrogen at a very early stage. Hydrogen could play a crucial role in decarbonising sectors such as heavy industry and long-distance transport, in which emissions are otherwise hard to abate, but it remains far from fulfilling its potential. ![]()
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