Hydrogen revolution at risk: IEA warns of insufficient government support

The International Energy Agency (IEA) has published an annual report summarising global hydrogen production and demand. It warns in particular of inadequate government support

The use of low-carbon hydrogen has only recently begun to attract political attention. It could help decarbonise sectors where emissions are difficult to reduce, as well as improve energy security.

The IEA report says that low-carbon hydrogen currently accounts for just 1% of global production. However, planned low-emission hydrogen production projects have grown significantly since last year, increasing potential output by 50% by 2030.

According to the IEA, more than 40 countries around the world have already formulated national hydrogen strategies. Despite this, current installed capacity and output from new projects remain unsatisfactorily low.

Rising costs and China’s dominance

Using renewable electricity to produce hydrogen significantly increases projects’ upfront investment costs, undermining their economic viability. Rising costs are also being driven by the global energy crisis, growing inflation and supply chain disruptions.