Hydrogen year 2021 – the year of deployment
2020: The year of promises
2021: The year of deployment
If the 2020 hydrogen year were to be summarised in one word it would be “promises”.
Promises from governments for a green recovery from the coronavirus pandemic. Promises from governments of hydrogen strategies and roadmaps to enable a low carbon future. Promises in the form of investments and collaborations in hydrogen businesses and projects from players around the world.
We have very little waiting time left – 2021 must be the year where these promises translate into deployment.
Explosion of national hydrogen strategies
2020 saw an explosion of national and regional hydrogen strategies. There are 66 countries committed to net zero carbon emissions by 2050 or earlier, of these around 25 of these have hydrogen strategies. 2020 saw the release of hydrogen strategies/roadmaps from the following countries:
These join Japan, South Korea and New Zealand who already had hydrogen strategies prior to 2020. In total, these countries represent 70% of global GDP. Financial commitments in these strategies have been high: €7bn by 2030 in Portugal’s strategy, €9bn by 2030 in Germany’s, €5bn (with a further €5bn from EU and private investments) by 2030 in Italy’s. Both the UK and USA have hydrogen on the political agenda but have not released standalone strategies yet.
There was a cascade effect in 2020 – as soon as one country released a hydrogen strategy, other nations piled in with their own equivalent. It is interesting that the ambitions of the European strategies are quite similar, for example Germany, France, UK, and Italy all aim to have installed 5GW hydrogen production capacity by 2030.
National hydrogen strategies and regulatory frameworks are vital to achieving climate targets,
…and their effects are unquestionable. For example, on 31.08.20 the HYBRIT project in Sweden began testing the world’s first zero carbon steel production began at the HYBRIT pilot plant – HYBRIT standing for Hydrogen Breakthrough Ironmaking Technology. The objective is to have a completely fossil-free process for steel making by 2035 – a key part of achieving Sweden’s goal of net zero by 2045. In Norway, the government has given a clear signal that hydrogen will play a role in the country’s future energy mix by, amongst other commitments, setting a requirement for hydrogen powered ferries on the long connection from Bodø to Moskenes. The daily hydrogen demand from this connection alone is approximately 5500 kg/day – or enough hydrogen for the refuelling of 140 H2 busses, or 1100 H2 cars every day.
Record year for business investment
2020 was a record year for investments in companies in the hydrogen value chain, with particular emphasis on hydrogen production and fuel cells. The investments made have been an order of magnitude higher than 2019, some key listings in 2020 were:
Unanswered questions
It is not yet clear how all these national strategies (and new ones to come) will be pieced together. For example, there is no global consensus on what the definition of “low-carbon” hydrogen is, and how a guarantee of origin system will work. In addition, unlike oil and gas, hydrogen is not an openly sold commodity in a global market. How will the pricing, storage, and certification of different types of hydrogen be done?
2021: The year of deployment
2020 saw a step change in both policy and financial investments from politicians and investors/business community alike.
If countries are to make headway towards 2030 and 2050 climate targets, 2021 must be a year where last year’s promises translate into deployment.
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