WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 22
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FIGURE 6
Total hydrogen demand by 2030, comparing 2021 and
2023 forecasts
250
200
150
100
50
0
2021 Roadmap
(net zero by 2050)
2023 Roadmap Update
Total Hydrogen Demand by 20230 (million tons)
92 https://www.reuters.com/business/energy/
iea-lowers-renewables-forecast-clean-hydrogen-2024-02-01/
93 By 2028
94 https://www.capgemini.com/insights/research-library/world-energy-markets-observatory/
WEMO 2024
• The availability of low-carbon electricity is an important
condition for low-carbon hydrogen development .
The last IEA study published early 2024,92 forecasts a 35%
lower global renewable electricity capacity93 dedicated to
hydrogen production, than a year ago.
As mentioned in the previous WEMO94, renewables
electricity development in Europe is behind objectives
and moreover, more renewable electricity is needed to
replace Russian gas.
Green hydrogen manufacturing outside Europe, for
example in countries like Morocco that are very sunny,
and its shipping to Europe is seriously considered to fill
the renewable electricity availability gap.
However, countries like Morocco need green electricity for
their growing domestic energy and freshwater demand.
Moreover, hydrogen long distance transportation to
Europe is complex (see below).
Nuclear electricity could also power electrolysers. In
this case, new reactors construction program should be
accelerated or the existing reactors lifetime of should be
extended to 80 years (see above). With the present nuclear
industry dynamics in Western countries, it will be a slow
decision process.
Low-Carbon Hydrogen Demand by 2023 (million tons)
Source: IEA Hydrogen review 2021, and 2023
22
To narrow the cost difference between low emission hydrogen
and grey hydrogen, authorities in the USA and EU are
implementing various subsidies plans. In the USA, under the
IRA (Inflation Reduction Act) legislation, renewable hydrogen
producers can receive up to $3/kg of low emission H2 produced
during 10 years after production start.
The European Commission should offer subsidies to renewable
hydrogen producers in the form of a fixed premium (between
€1.7 and € 2.5/per kg of hydrogen produced) for 10 years after
production start. In addition, producers of green hydrogen will
receive free CO2 emission allowances that they can trade.
Contrarily to EU the subsidies structure under the IRA,
does not involve lengthy, burdensome, and uncertain
application processes.
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