A new report released by the Deloitte Center for Sustainable Progress (DCSP) highlights the growing market potential of green hydrogen as a reliable and sustainable energy source. The report, titled “Green hydrogen: Energizing the path to net zero. Deloitte’s 2023 global green hydrogen outlook,” predicts that the market for green hydrogen will surpass the value of the liquid natural gas (LNG) trade by 2030 and reach a staggering $1.4 trillion per year by 2050. The report emphasizes the role of green hydrogen, produced through the splitting of hydrogen atoms from water molecules using renewable energy, in driving the transition to a net-zero future.
Developing countries have significant growth opportunities: With targeted investments, developing countries could account for nearly 70% of the projected $1.4 trillion green hydrogen market in 2050, supporting up to 2 million jobs annually between 2030 and 2050.
Clean hydrogen’s potential for emission reduction: Deloitte’s Hydrogen Pathway Explorer (HyPE) model indicates that clean hydrogen could contribute up to 85 gigatons of CO2 emissions reduction by 2050, more than twice the global CO2 emissions in 2021.
Interregional trade and infrastructure: Diversified transport infrastructure and interregional trade will play a crucial role in unlocking the full potential of the clean hydrogen market. Global hydrogen trade is projected to generate over $280 billion in annual export revenues by 2050, with North Africa expected to benefit the most.
To scale up the clean hydrogen economy and meet projected demand, the report offers key recommendations for policymakers:
Lay the market foundation: Develop national and regional strategies, establish a transparent certification process, and promote international coordination to ensure a level playing field.
Spur action: Set clear targets for clean hydrogen-based products, provide fiscal incentives and subsidies to reduce cost disparities between clean and fossil-based technologies, and integrate clean hydrogen into business value chains.
Ensure long-term resilience: Diversify value chains, improve infrastructure design for transportation and storage, and focus on enhancing resilience during the transition to clean hydrogen.
Deloitte has launched its Global Hydrogen Center of Excellence, dedicated to supporting clients in scaling up clean hydrogen and driving large-scale decarbonization. The center offers a range of services, including advisory support, insights, project execution, and operational enablement.