‘Much stronger’ hydrogen policies needed as world risks missing vital opportunity, climate goals

Facebook
Twitter
LinkedIn
Reddit
Email
Green hydrogen will be vital to the transition to net zero but not enough investment is occurring to reach the levels required. Image: GroenLeven.

Global hydrogen uptake is far below what is required under the Paris Agreement and underinvestment in the technology is a missed opportunity to decarbonise hard to abate sectors of the global economy, according to risk management provider DNV.

DNV’s Hydrogen Forecast to 2050 report found that hydrogen will account for just 0.5% of the global energy mix by 2030 under current trends, with this rising to just 5% in 2050. To meet the Paris Agreement goal, however, hydrogen uptake would need to triple to meet 15% of energy demand by mid-century, said the report.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Hydrogen is the key to decarbonising industries which are difficult to electrify, such as shipping, aviation and high-heat manufacturing. But, at present, “policies do not match hydrogen’s importance,” said DNV CEO and group president Remi Eriksen.

The report said the “low and late uptake of hydrogen” meant that “much stronger policies are needed to scale beyond the present forecast, in the form of stronger mandates, demand-side measures giving confidence in offtake to producers and higher carbon prices.”  

“We need to plan at the level of energy systems, enabling societies to embrace the urgent decarbonisation opportunities presented by hydrogen,” added Eriksen. 

DNV said global spending on hydrogen production for energy purposes through to 2050 will be in the region of US$6.8 trillion, with an additional US$180 billion spent on hydrogen pipelines and US$530 billion on building and operating ammonia terminals, a key derivative of hydrogen with broad applications.

The report charts the global annual average expenditure for hydrogen production and its derivatives for energy uses. It suggested that between 2031-2040, hydrogen capex costs will be just shy of US$150 billion per year, with opex accounting for around US$100 billion. The corresponding figures for the 2041-2050 period are US$160 billion for capex and a staggering US$220 billion for opex.  

Then there is the issue surrounding how the hydrogen is produced. “[Policies] will also need to support the scaling of renewable energy generation and carbon capture and storage as crucial elements in producing low-carbon hydrogen,” said the report.  

Blue hydrogen – produced from natural gas with emissions captured – has a greater role to play in the shorter term (around 30% of total production in 2030), but its competitiveness will reduce as renewable energy capacity increases and prices drop, said DNV.

That said, globally, green hydrogen will reach cost parity with blue within the next decade, according to DNV, which added that green hydrogen will increasingly be the cheapest form of production in most regions.

“By 2050, 72% of hydrogen and derivatives used as energy carriers will be electricity based, and 28% blue hydrogen from fossil fuels with carbon capture and storage, down from 34% in 2030,” said DNV’s report.

But there are also issues with the transportation and delivery of hydrogen. Hydrogen will be transported by pipelines up to medium distances within and between countries, but not between continents, said DNV, which also predicted that 50% of hydrogen pipelines globally will be repurposed from natural gas ones.

Moreover, hydrogen trade will also be “limited by the high cost of liquefying hydrogen for ship transport and the low energy density of hydrogen,” DNV said, adding “the hydrogen derivative ammonia, which is more stable and can be more readily transported by ship, will be traded globally.”

PV Tech Premium has laid out what you need to know about green hydrogen and its integration with solar PV and has taken a deep dive into the race for green hydrogen dominance and the fight for market share among three core electrolysis technologies.

Read Next

September 4, 2025
Gavin Newsom has signed an executive order to accelerate the permitting of energy generation projects that could be set to lose IRA support.
Premium
September 1, 2025
The UK’s new Labour government took power last summer, promising a renewable energy revolution, with solar playing a lead role.
Premium
August 29, 2025
PV Tech Premium hears from Renewable Properties and Silicon Ranch about the new 'start of construction' rules for US solar projects.
August 28, 2025
Venture capital firm Pacific Channel has launched Fund V, which targets 10GW of solar, wind, and energy storage in New Zealand.
August 18, 2025
The Australian government of Victoria has released an amended version of the Victorian Transmission Plan, adding 200,000 hectares of area to develop renewable energy – in addition to 230,000 hectares proposed in the first draft.
August 18, 2025
US solar industry representatives have voiced concern at the US Treasury Department’s new “start of construction” rules for large projects.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines