Hydrogen has taken off this year as the future green fuel of choice, with governments and businesses betting big that the universe’s most abundant element can help fight climate change.
More than $150 billion worth of green hydrogen projects have been announced globally in the past nine months. In total, more than 70 gigawatts of such projects are in development, which could require $250 billion worth of investment by 2040, research firm Rystad Energy estimates.
China, Japan and South Korea recently joined a slew of European countries setting net zero targets for carbon emissions by the middle of the century.
While most developed countries along with China and India plan to boost renewable power output, the net zero emissions targets are driving a push to find ways to decarbonise industries that cannot be electrified and depend on fossil fuels.
The main targets are those sectors that use coal, oil and gas as raw materials, such as in steel-making, cement and fertilisers, and in shipping and aviation.
To meet that expected demand, powerhouse oil and gas exporters from Saudi Arabia to Australia have set out policies to develop production and export of green hydrogen.