1Q 2023

Navigating Uncertainties in the Clean Hydrogen Trade

Low carbon hydrogen production technology has improved in the past decade, moving from precommercial or low volume phases to commercial viability at a significant scale. Traditional large hydrogen industry players have invested in numerous projects worldwide, with several already completed and many more still in the development pipeline.

Despite this enthusiastic rollout, considerable uncertainty remains related to price competition with existing grey hydrogen and the potential to expand to non-traditional demand sectors such as transportation, industrial heating, and power generation. Policy support can help reduce cost barriers, facilitate infrastructure development, and accelerate the development and commercialization of critical enabling technologies. As such, policies like the Inflation Reduction Act in the US and the REPowerEU plan in the European Union will play a strong role in facilitating the transition to low carbon hydrogen.

This Guidehouse Insights Strategy Insight report covers the current state of hydrogen supply and demand; how policymakers are reacting to changes in the hydrogen industry; and additional related topics, including analogous commodities that can serve as indicators of the future of low carbon hydrogen, barriers to trade development, and financing options.

Pages 22
Tables | Charts | Figures 2
  • What use applications are driving hydrogen demand today?
  • What use applications will drive hydrogen demand in the next 10 years?
  • How will the carbon intensity of global hydrogen supply change in the next 10 years?
  • What mode of hydrogen transport is most preferred?
  • What are the key laws and policies that will affect the hydrogen trade?
  • How can a developer acquire financial backing for a clean hydrogen project?
  • Green and blue hydrogen project developers
  • Renewable project developers
  • Carbon capture equipment providers
  • Shipping companies
  • Ammonia producers




The Hydrogen Trade Today

Hydrogen Demand

Feedstock Demand for Hydrogen Will Grow with Increased Fossil Feedstock Restrictions

Fuel Demand for Hydrogen Will be Dominated by Transportation, at Least Initially

Hydrogen Supply

Blue Hydrogen Production

Green Hydrogen Production

Hydrogen Infrastructure

Policies Affecting the Hydrogen Trade

The EU Is a Pioneer in Hydrogen Policy Development

US Legislation Will Support the Hydrogen Industry for a Decade or More

Gulf Countries Are Leveraging Their Supply Capabilities

Asia Pacific and South America Are Behind but Catching Up

Implications for the Hydrogen Trade

International Trade Paves New Routes across the Globe

Preferred Mode of Hydrogen Transport Depends on Distances

Using the LNG Market as a Reference for Hydrogen Markets Is Risky

Deeper Dive into the Hydrogen Trade

Acquiring Financial Backing for Clean Hydrogen Projects

To Lead or to Follow? Hydrogen Uncertainties Are What You Make of Them

Case Study: A Successful Hydrogen Collaboration Project


  • Cost of Hydrogen Transport by Various Modes
  • Hydrogen and LNG Market Characteristics
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