The International Renewable Energy Agency (IRENA) sees hydrogen as playing a significant role in the world’s new energy system. This comes at a particularly important time as CO2 emissions are reaching pre-pandemic highs and the price of crude oil nears triple digits (see below).
Energy-related carbon dioxide emissions worldwide from 1975 to 2021*(in billion metric tons)
Green hydrogen is made from a combination of water and renewable electricity. It has become a policy priority for many nations that are preparing to cut emissions to net zero by 2050. The financial Times has reported new hydrogen deals taking place in Germany Uruguay and Brazil, while the US, China, EU, Japan, India and S. Korea have made hydrogen a large component of their energy plans. Approximately US $65 billion has been designated for hydrogen production in the next decade.
In fact, a recent IRENA report concluded that “a new cartography of energy politics” would emerge as global hydrogen production ramps up. This means, no more OPEC and Russia versus everyone else.
Like any energy, there are tradeoffs. Many point to the difficulties in hydrogen transport, albeit, when converted into ammonia, hydrogen can be transported long distances via ship or existing natural gas pipelines.
This week, Saudi Arabia, known for its abundance of fossil fuel resources, indicated that its goal is to become the least expensive green hydrogen producer in the world.
Its time to explore these opportunities now.
The clock is ticking.