Green hydrogen: 56% annual growth rate makes it the main alternative to gas

09-09-22

Global demand for green hydrogen is forecast to reach 17.87% by 2025, and up to 61% by 2050. The global turnover of the green hydrogen sector is estimated at $16.54 billion in 2025, growing at a rate of 56.3% per year. By 2050, it is expected to be used in sectors such as construction, mobility, the chemical industry and as a heat and light generator. Its production costs are estimated to fall by more than 60% by 2030, reducing its price to $1.6/kg. 

This is due to significant investment by the public sector (such as the EU's REPower plan) and especially the private sector, which is expected to reach $340 billion by 2030. At the forefront of this trend are the United States and Europe, especially Spain. In the last 4 years, Spain has been in the top 5 countries receiving foreign investment with 3,000 million euros.

Spain is a benchmark for green hydrogen

According to a report prepared by Wood Mackenzie, Spain currently concentrates 20% of all green hydrogen projects worldwide, only behind the United States, which concentrates more than half. Among them is the HyDeal Ambition project, a world-leading project aimed at creating the necessary infrastructures for production and transport in Spain. In 2021, the government launched a three-year 1.5 billion euro aid plan to boost projects in the sector. 

Catalonia, the new hydrogen Silicon Valley

Ursula von der Leyen recently commented on the region's transformation into a benchmark energy hub thanks to the EU's Next Generation funds. Catalonia has eight technology and research centres dedicated to the study of green hydrogen. One of the many proposals to promote the use of green hydrogen is the Ebro hydrogen corridor, also involving Aragon, Navarre and the Basque Country.

Source of information: https://www.companias-de-luz.com/noticias/hidrogeno-verde/