The global energy transition is swiftly moving forward, with industries attempting to shift focus from fossil fuels to renewables. Hydrogen power systems are a new clean energy resource that can be paired with existing technologies to improve sustainability.. Green hydrogen has the potential to be utilized in transportation, construction, and other industries as costs decline and production capacity rises.
BNEF predicts that the U.S., Europe, and China will supply 80% of the world’s hydrogen by the end of the current decade. However, this will depend on government subsidies, tax credits, and the speed of technological development. The annual hydrogen supply in the three markets is anticipated to increase thirty times to 16.4 million tons by 2030.
This expansion will be driven by an increasing demand for a stable energy supply, carbon reduction, and growing corporate commitments to the use of clean and sustainable energy. Progress is already apparent through the robust growth of such leading U.S. hydrogen companies as Plug Power, Bloom Energy, and FuelCell Energy.
While the green hydrogen market has outstanding growth potential, there are also obstacles to be overcome including high production costs, inadequate distribution and storage infrastructure, and unpredictable regulations. To surmount these hurdles, governments will need to further bolster demand incentives, raise carbon costs, and subsidize the construction of hydrogen storage and transportation facilities.
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