The hydrogen market could be worth US$2.5trn by 2050 and become instrumental in meeting greenhouse gas emission targets, according to a leading industry group.
The Hydrogen Council – backed by a group of businesses including Air Liquide and BMW – reckons the element might ultimately help the world generate 18% of its final energy demand, creating 30mln jobs in the process.
Its use in energy storage could be the key that unlocks large-scale energy storage projects, as well as “decarbonising” transport.
It could also be key in limiting global warming to just two degrees Celsius.
US$280bn investment required
However, the investment required to achieve the targets set out by the Hydrogen Council will be significant – a total of US$280bn between now and 2030.
“This ambitious yet realistic approach would deliver deep decarbonisation of transport, industry, and buildings, and enable a renewable energy production and distribution system,” the Council said.
“To realise this vision, investors, industry, and government will need to ramp up and coordinate their efforts.”
Two industry leaders in the UK
It is developing technology that converts waste hydrogen produced by the chemicals companies into power.
ITM Power (LON:ITM), meanwhile, is active on two separate fronts.
It is developing hydrogen fuelling stations for the next generation of eco-cars alongside a technology that converts electricity to hydrogen that’s used for energy storage.