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Editorial Comment: Infrastructure development will play a crucial role in the global H2 economy

Lee Nichols, Editor-in-Chief/Associate Publisher

 

The world is engaged in an energy transition. Many nations around the world have set ambitious net-zero emissions goals, as well as enacted new regulations and initiatives to meet those targets. Undoubtedly, H2 will play a major role in global decarbonization activities. 

According to bp’s Energy Outlook 2022, global H2 demand is forecast to expand exponentially to 2050, reaching between 300 MMtpy–450 MMtpy (FIG. 1). Although the growth in H2 demand is modest over the next decade, demand significantly accelerates in the 2030s and 2040s. According to the report, falling H2 production costs and tightening emissions policies allow low-carbon H2 to compete against incumbent fuels.1 

Capacity/infrastructure investments. However, to produce the needed H2 to satisfy future demand, an immense amount of capital investments will be needed. The good news is that H2 project announcements have continued to increase over the past year. According to Gulf Energy Information’s Global Energy Infrastructure database, active H2 projects have increased to more than 930 globally. New H2 project announcements are increasing, as well. This year, new H2 project announcements have increase more than 8% from Q1 to Q2. 

To satisfy global H2 demand, a significant amount of infrastructure will be needed. How will this infrastructure materialize? What type of infrastructure and technologies are needed to transport H2 to demand centers and utilize it effectively? 

This month’s Special Focus details several areas on H2 infrastructure development. These investments and technologies will be crucial for the global adoption of H2 usage in industrial, commercial and private consumption.H2T

LITERATURE CITED

1. bp, “Energy Outlook 2022,” 2022 online: https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/energy-outlook/bp-energy-outlook-2022.pdf

FIG. 1. H2 demand by sector to 2050. Source: bp’s Energy Outlook 2022.FIG. 1. H2 demand by sector to 2050. Source: bp’s Energy Outlook 2022. 

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