Industry News

DNV: Policies don’t Match Hydrogen Importance to Reach Paris Climate Goals

by | Jun 14, 2022

Governments need to urgently put in place policies that support the production of hydrogen to decarbonise energy systems worldwide, according to a new DNV report. 

The DNV noted in the report that the amount of hydrogen in the energy mix will only reach 0.5% in 2030 and 5% in 2050, a far cry from the 15% required to meet the Paris Agreement. 

The report expects that green hydrogen will be the dominant form of production by mid-century, making up 72% of output. However, this will require abundant renewable energy to power 3100GW of electrolyser capacity — more than twice the solar and wind capacity available today. 

Blue hydrogen produced from natural gas with carbon capture will play a predominant role in the short term, accounting for 30% if production in 2030. However, it won’t remain competitive as renewable energy capacity increases and prices drop, according to the analysis. 

DNV group president and chief executive Remi Eriksen said: “Hydrogen is essential to decarbonise sectors that cannot be electrified, like aviation, maritime, and high-heat manufacturing and should therefore be prioritized for these sectors.

“Policies do not match hydrogen’s importance. They will also need to support the scaling of renewable energy generation and carbon capture and storage as crucial elements in producing low-carbon hydrogen.”

Global expenditure on hydrogen production will be $6.8 trillion by 2050. An additional $180 billion will be spent on hydrogen pipelines and $530 on developing and running ammonia terminals, according to report projections.