The states of the Hydrogen matter: from a fluid situation to more solid progress
At the peak of its hope and hype in 2020-21, hydrogen was making the headlines and was seen as the number one solution to decarbonization. Three years later, it is time for a reality check. What’s a reasonable scenario and where are the opportunities?
While the International Energy Agency estimates that hydrogen would only mitigate 6% of the cumulative emissions reductions needed under its net zero scenario, we believe its role will be key for the so-called hard-to-abate industries (steel, chemicals, heavy-duty transportation and shipping) as these have few alternative options to decarbonize.
Near-term, hydrogen’s outlook looks bright on the industrial demand side, with 94 million tons in 2021[1].