Achieving Net-Zero Goals through Visionary Growth Strategies Toward the Green Hydrogen Economy
Hydrogen is the future of energy, while green hydrogen is the key to clean energy transition. Emerging applications to decarbonize hard-to-abate sectors have accelerated demand for hydrogen derived from renewable energy.
This study focuses on green hydrogen potency implications in 4 scenarios: Limited resourcefulness, long-term clean energy strategies, tech innovation and diversification, and green hydrogen economy unlocked. Government support, regulatory framework, trade development, and technological innovations augment these scenarios. In recent years, green hydrogen has gained momentum, and governments around the world are highly invested in this trend, as it could be the solution to the growing energy crisis, carbon emissions, and global warming. Currently, only 0.1% of global hydrogen accounts for green hydrogen production, and the demand for green hydrogen is estimated to rise to almost 100 million tons by 2030. Production technology innovations and a robust regulatory framework are needed to meet this target.
The private and public sectors are harmonizing to increase green hydrogen contribution to 12% of the total hydrogen production. The high costs involved in green hydrogen production due to weak government policies, incentives, and immature technology pose a significant challenge to the growth trajectory of the green hydrogen economy.
In the short run, the government of global economies is focusing on introducing a standard regulatory framework to eliminate the barrier of unsystematic policies. The private sector plays a crucial role in developing green hydrogen hubs with the financial support of the public sector. The long-run vision of the green hydrogen economy comprises competitive costs of production, technology maturity, and socioeconomic development, eventually achieving net-zero emissions.
A green hydrogen economy will help achieve economies of scale associated with production, a stable regulatory framework, well-established international trade routes and relations, widespread commercial applications, and societal acceptance of green hydrogen as a primary fuel.
