Hydrogen Strategies Unveiled: A Guide To Meeting 1.5°C Goals And Scaling Up Clean Energy – Report

The International Renewable Energy Agency (IRENA) has developed a 1.5°C Scenario in its World Energy Transitions Outlook, which emphasizes the critical role of hydrogen in achieving climate goals. This scenario outlines a pathway to limit the global temperature rise to 1.5°C above pre-industrial levels by the end of this century. It focuses on technology solutions that are readily available and can be rapidly scaled up to meet this target. In this scenario, clean hydrogen and its derivatives are expected to contribute 12% to the overall reduction in carbon dioxide (CO2) emissions by 2050.

To achieve this, clean hydrogen production must surge from 0.7 million tonnes in 2022 to 523 million tonnes annually by 2050, with green hydrogen making up 94% of this amount. Investments in hydrogen infrastructure, including electrolysers and storage facilities, will need to grow significantly, from USD 1.1 billion in 2022 to USD 170 billion annually by 2050. The cumulative installed capacity of electrolysers is projected to increase from 550 megawatts (MW) in 2020 to 5.7 terawatts (TW) by 2050.

Hydrogen strategic documents outline national targets and plans for scaling up clean hydrogen production and use, covering aspects such as demand, production, export capabilities, and challenges. These documents reflect a country’s commitment to leveraging clean hydrogen across various sectors. They provide a clear vision and direction for policymakers, investors, and industry stakeholders, fostering an environment conducive to innovation and market development. However, these documents vary widely among countries in content and depth, with some countries publishing multiple documents.

Currently, there is no international standard for drafting hydrogen strategies, leading to diverse approaches and definitions across countries. As of May 2024, 46 national and supra-national hydrogen strategies and 8 roadmaps have been published, with at least 20 more countries developing similar documents. European countries have published nearly half of these strategies, with significant activity also in the Americas and the Middle East and North Africa.

This report analyzes hydrogen strategies and roadmaps from various countries, aiming to guide policymakers in creating effective strategies. It addresses the importance of setting clear targets, engaging stakeholders, and integrating hydrogen strategies within broader energy planning frameworks. The report also helps in prioritizing actions, establishing hydrogen trade roles, setting targets, and overcoming barriers to hydrogen sector development. It provides practical methods for transforming strategic goals into actionable policies and interventions.

The value of including specific policy promises in strategic documents is significant. Strategies can shape expectations and impact the development of the hydrogen sector. A strong commitment from governments can enhance investor confidence and attract more investments. This involves providing a stable regulatory environment and making realistic commitments to avoid disillusionment. Effective stakeholder engagement is crucial for balancing needs and ensuring policy effectiveness. Governments need to maintain a long-term vision while implementing short-term actions that lay the groundwork for achieving their goals.

The report underscores that successful hydrogen strategies must be integrated with existing programmatic documents to ensure coherence and maximize impact. This holistic approach helps avoid fragmentation and inefficiencies in the energy transition process. By aligning hydrogen strategies with broader energy plans, countries can enhance policy coherence, facilitate cross-sectoral collaboration, and achieve their long-term energy and climate objectives more effectively.

As countries draft and update their hydrogen strategies, they must consider both past experiences and current challenges to develop effective policies that promote the growth of the clean hydrogen sector. This involves setting clear targets, engaging stakeholders, and integrating strategies within broader energy frameworks to ensure a successful transition to a low-carbon economy.

Please view the full report here.