- How can governments support and guide the increased integration of hydrogen?
- What is the state and prospect of hydrogen usage in industrial processes?
- How is hydrogen being used in chemical feedstocks?
- What is hydrogen’s role in on-road and off-road transportation?
- Is hydrogen being used building and residential applications?
- What are the prospects of hydrogen usage in key power system applications?
Emerging Hydrogen End Uses
Hydrogen is expected to play a critical role in enabling the energy transition. Hydrogen is possibly one of the best options for large-scale decarbonization in segments such as transport, industry, and buildings, which is a key driver of hydrogen adoption. Hydrogen integration in the energy portfolio increases flexibility in energy supply-demand matching and facilitates sector-coupling. However, the extent of hydrogen integration is constrained by its alignment with customer preferences and conveniences. The cost of hydrogen production from low carbon energy sources is one such obstacle to hydrogen adoption.
To reduce these costs, several governments globally have proposed roadmaps, policies, and subsidies aimed at reducing the cost of producing low carbon hydrogen. In contrast, measures to increase demand have received limited attention. Unlocking sustained economies of scale for hydrogen requires a step change in its demand. Caution must prevail here, as being end-use agnostic may result in stranded assets.
This Guidehouse Insights report aims to demystify emerging end-use candidates that are expected to become mainstays in the future. These applications, coupled with government policy instruments, have the potential to unlock more projects and to support scaling the hydrogen economy.
- Electrolyzer manufacturers
- Government agencies
- Hydrogen nonprofits and research organizations
- Renewable technology developers
- Utilities
- Energy cooperatives
- On-road and off-road transportation companies
- Investor community
Spark
Context
Recommendations
Governments Have a Role to Play in Hydrogen Adoption
Commit to Targets and Long-Term Policy Signals
Extend Support Schemes to Create Hydrogen Demand
Plan to Mitigate Investment Risks for Hydrogen Assets
Support R&D and Innovation
Support International Standardization and Remove Regulatory Barriers
Hydrogen Adoption Increases Across Sectors
Industrial and Chemical Hydrogen Remains a Leading End Use
Hydrogen Use in Industrial Iron and Steel Increases
Hydrogen Can Be Used to Create Ammonia and Methanol for Chemical Feedstock
Hydrogen Use Is Shifting from Refining Oil to Creating Synfuels
Industrial Clusters Address Hydrogen Adoption Concerns
Synthetic Fermentation Using Hydrogen Helps Decarbonize Food Industries
Hydrogen Use in Transportation Increases
Fuel Cell Vehicles Face Slow Adoption Rates
Vintage Vehicles Offer an Opportunity for Hydrogen Use in Transportation
Fuel Cell Buses Become Prominent
FCV Use to Increase in Long-Haul Trucking
More Hydrogen Refueling Stations Are Needed to Support Hydrogen Vehicle Adoption
Material Handling, Mining, and Agricultural Vehicles Are Switching to Hydrogen Fuel Cells
Hydrogen Increases in Rail Transport Due to Decarbonization and Cost Concerns
Maritime Shipping Slowly Transitions to Hydrogen
Hydrogen Becomes Critical to Decarbonizing Aviation
Hydrogen Helps Decarbonize the Buildings and Residential Sectors
Stationary Fuel Cells Receive Government Support
Blending Hydrogen into Natural Gas Pipelines Decarbonizes Heating
Hydrogen Plays a Role in Decarbonizing the Power Sector
Scaling Hydrogen Demand Requires Stakeholder and Government Collaboration
Stakeholders Must Acknowledge the Value of Industrial Clusters in Scaling Hydrogen Demand
Regulators Must Stimulate Hydrogen Demand and Eliminate Barriers
Stakeholders Must Mitigate Hydrogen Investment Risks
Governments Must Establish Policies
Stakeholders Must Focus on Key Sectors for Hydrogen Integration
- Types of Industrial Hydrogen Clusters
(Unlimited users)