Hydrogen is often hyped as the “Swiss army knife” of the energy transition because of its potential versatility in decarbonising fossil fuel-intensive energy production and industries. Making use of that versatility, however, will require hydrogen producers and distributors to cut costs, manage technology risks, and obtain support from policymakers. To cut carbon dioxide emissions, hydrogen production must shift from its current reliance on fossil fuels.
With the right policies and technological improvements, the cost of green hydrogen could fall below the cost of grey hydrogen in the next decade, enabling widespread adoption of the former. Countries around the world are introducing new and varied incentives to address this gap between the expected demand and supply of green hydrogen.