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IEA publishes Global Hydrogen Review 2021

CIS GAS MONETISATION

IEA publishes Global Hydrogen Review 2021

According to IEA, global hydrogen demand in 2020 amounted to 90 million tonnes, a 50% increase since the early 2000s. Almost the entire volume of hydrogen is produced from fossil fuels, and only 0.7 million tons - with the use of CO2 capture technologies - AC TEK

The total capacity of electrolysers, which are required to produce hydrogen from water, has doubled over the past five years and amounted to around 300 MW by mid 2021. After the implementation of all planned projects, the total production of hydrogen by electrolysis will reach more than 8 million tons by 2030.

A key obstacle to the production of low carbon hydrogen is the difference in cost compared to fossil hydrogen. The cost of producing hydrogen from natural gas ranges from $ 0.5 to 1.7 / kg, while using carbon capture technologies raises the price to $ 1-2 / kg.

During the production of hydrogen by electrolysis, energy costs are a crucial factor as they represent 50-90% of the present value. At an electricity price of $ 50-100 / MWh, the cost of hydrogen is $ 3-5 / kg. With an increase in the share of renewable energy sources in electricity production and a decrease in the cost of electricity generated by solar power and wind energy, the price of hydrogen will decrease.

When hydrogen is produced using solar power (electricity price $ 17 / MW * h), the normalized cost of 1 kg of hydrogen could be less than $ 1.5, which is comparable to the cost of producing hydrogen from natural gas using capture and storage technologies. By 2050, at the cost of electricity generated through solar energy of $ 12 / MWh, the cost of hydrogen production may fall to $ 1 / kg, making it competitive with hydrogen produced from natural gas without the use of CO2 capture technologies.

Today, most of the world's government regulation is focused primarily on low-emission hydrogen production, while there has been limited attention to demand-side measures. Nevertheless, the creation of additional demand is the most important condition for the development of a hydrogen economy and an increase in the role of hydrogen in energy transition.

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