Key policy mechanisms to drive clean hydrogen uptake 4i4q1f

The report, titled Hydrogen: Closing the Cost Gap, highlights that effective implementation of existing policies could enable the uptake of around 8 million tons per annum (Mt p.a.) of clean hydrogen across these regions by 2030. Key policy mechanisms include the transposition of the EU Renewable Energy Directive (REDIII) at the national level, the rollout of Japan’s Contracts for Difference (CfD), South Korea’s Clean Hydrogen Portfolio Standard (CHPS), and the hydrogen-related sections of the US Inflation Reduction Act (IRA). These policies could reduce production costs and incentivize the use of clean hydrogen.

Unlocking additional demand through infrastructure and cost reduction 3n4e3k

Furthermore, the report finds that with incremental infrastructure enhancements and cost declines, an additional 13 Mt p.a. of hydrogen could be unlocked in established use cases, such as low-carbon refining and ammonia demand, particularly in the EU and US. Expansion of Carbon Capture and Storage (CCS) networks in the US is cited as a necessary step. Emerging sectors, such as trucking, also hold significant potential but depend on the expansion of hydrogen refueling infrastructure and further reduction in hydrogen production costs.

The report notes that another 13 Mt p.a. is available for new end uses with limited decarbonization alternatives, such as maritime and aviation. However, these sectors face more significant cost and infrastructure challenges. Despite these hurdles, near-term advancements could lay the foundation for future industry growth in these areas.

The total prospective hydrogen demand considered in the report is 34 Mt p.a., with 75% coming from established use cases like refining and ammonia, while the remaining 25% is expected from new sectors like maritime and aviation.

Sanjiv Lamba, CEO of Linde and Co-chair of the Hydrogen Council, emphasized the importance of hydrogen in the energy transition, stating, “A successful energy transition will be achieved through multiple solutions, including hydrogen. The implementation of existing policies in key markets will be essential for advancing clean hydrogen production and its derivatives within this decade.”

In addition, Jaehoon Chang, Vice Chair of Hyundai Motor Group and Co-chair of the Hydrogen Council, also highlighted the business potential of hydrogen, particularly in transportation. “Establishing hydrogen as an ‘everyday energy’ is unlocking tangible business opportunities,” said Chang. “To further boost demand and lower costs, we need ive frameworks that foster a virtuous cycle within the hydrogen ecosystem.”

Finally, Ivana Jemelkova, CEO of the Hydrogen Council, concluded: “The continued scale-up of hydrogen requires policy certainty, simplicity, and cross-sector collaboration on critical business-enabling measures such as infrastructure. This report outlines concrete solutions to unlock business cases and advance energy security, competitiveness, and sustainability priorities.”