IRENA | To Accelerate Green Hydrogen Deployment

IRENA  | To Accelerate Green Hydrogen Deployment

Green hydrogen and its derivatives are key to the last mile of net-zero emissions reduction – which should be completed by mid-century at the latest. Achieving net-zero requires a comprehensive transformation of all sectors, including not just power but also end uses. A combination of energy efficiency and renewable energy can deliver the bulk of the emissions reductions needed to meet the goals of the Paris Agreement.

For some applications where the direct use of renewable electricity is not technically viable or cost-effective, green hydrogen can help reduce the decarbonisation gap. According to IRENA’s calculations, under the 1.5°C Scenario, by 2050, green hydrogen and its derivates may abate 12% of emissions and account for 14% of final energy consumption (Figures 1 and 2). That alone would require scaling up electrolyser capacity from negligible numbers today to 5 722 gigawatts in 2050 (IRENA, 2023a).

Green hydrogen and derivatives give highly industrialised countries opportunities to transform their industries so as to achieve net-zero emissions, while also presenting prospects for industrial development in developing countries rich in renewable energy resources. Achieving these goals requires a combination of strong demand signals, effective public policies and proactive private sector involvement. Green hydrogen deployment will also lead to the creation of new value chains, some of them spanning the globe, involving a wide range of stakeholders. International collaboration is needed to share best practices and also the lessons learnt along the way

The global pipeline of hydrogen pilot projects is nascent and concentrated in Europe and Asia.
High financing costs and access to finance remain key challenges in the many developing countries with significant renewable energy potential.
Fostering community involvement, and thus bolstering social acceptance, is critical

Key insights on the demand side
Efforts to create demand need to be stepped up
Regulatory support must be maintained, alongside bold policy making

Finance for the Green Economy