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News > Global environmental current affairs > GHD says more and more countries are developing hydrogen strategies to drive net zero emissions

GHD says more and more countries are developing hydrogen strategies to drive net zero emissions

2023-08-31

As economies and industries transition to a decarbonized world, the use of low-carbon fuels is expected to play a key role. Thomas Evans, Executive Consultant at GHD (Gutteridge Haskins & Davey), stated that a growing number of countries are considering building their own hydrogen capabilities and strategies to achieve net zero targets, and are assessing the costs and infrastructure required for hydrogen projects. Evans further explained, "Every country with decarbonization goals needs to make room for hydrogen in its energy mix, as demand for hydrogen-related services and strategies will continue to grow."

As economies and industries transition to a low-carbon world, hydrogen, produced from renewable energy and natural gas, is expected to become a key fuel. Hydrogen comes in various forms, including blue, green, and gray. Both blue and gray hydrogen are produced from natural gas, while green hydrogen is produced through the electrolysis of water molecules. French investment bank Natixis estimates that hydrogen investment will exceed $300 billion by 2030. Last September (2022), the United Arab Emirates (UAE) signed an agreement with GHD and Fraunhofer-Gesellschaft to develop its hydrogen strategy. The UAE aims to produce 1.4 million tons of hydrogen annually by 2031 and 15 million tons by 2050. Thomas Evans noted that the UAE has competitively priced blue hydrogen, making the combination of blue and green hydrogen, along with all natural resources, a promising opportunity.

Green hydrogen is currently very expensive to produce and will not reach cost parity with natural gas for another five years. However, as with any emerging technology, initial costs are high, and as supply chains, demand, and supply grow, the economics will catch up. Furthermore, hydrogen is the "only" option for decarbonizing industries like steelmaking, shipping, and long-distance transport. Rethink Energy estimates that the cost of producing green hydrogen is expected to drop from $3.70 per kilogram to $1.54 by 2030.

Source: BUSINESS

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