Climate Change Mitigation Powering the Transition to Hydrogen
-
Hydrogen is a significant source of renewable energy and is not heavy, offers good energy security, and does not produce direct emissions of greenhouse gases (GHG)
-
Compared to electric vehicles (EVs), vehicles powered by hydrogen technology form a more reliable and cost-effective substitute for diesel vehicles
-
‘Hydrogen’ theme job openings and deal volumes have increased multifold over the last three years
Climate Change Mitigation Powering the Transition to Hydrogen
In February 2022, the CEO of Airbus stated in an interview that the company was prepared to make hydrogen-electric engines in-house. The company’s statement of intent regarding hydrogen mobility came after Airbus announced a hiring drive in January 2022 to accelerate its decarbonization objectives. Under project ZEROe, Airbus is working on three airplane concepts to start mass-production of hydrogen-powered aircraft by 2035. Airbus is looking to develop hybrid-hydrogen aircraft powered by hydrogen combustion through modified gas turbine engines.
Hydrogen is a clean fuel that does not emit CO2 on combustion and offers greater energy security. It is light, storable, energy-dense, and abundantly available. Due to such commercially viable characteristics of hydrogen, various companies are working on offerings around hydrogen. Governments are also considering hydrogen-based initiatives to boost sustainable, clean energy adoption. Supplying hydrogen to industrial users is also a significant business.
Investments and Policy Initiatives
In February 2022, German energy storage firm H2-Industries stated that it would invest $3 billion to establish a green hydrogen plant in Egypt. The plant will have a production capacity of around 300 million tons of green hydrogen per year and will absorb 4 million tons of waste annually, including organic waste and non-recyclable plastic. The project will contribute to the Egyptian government’s renewable energy goals to increase energy production from renewable sources to 20% of the total production in 2022 and reach 42% by 2035.
In February 2022, the CEO of Toyota New Zealand stated that the company intends to explore use cases for hydrogen outside the automotive sector. Toyota New Zealand secured the nod from Toyota HQ in Japan to explore commercial partnerships related to hydrogen technology in New Zealand, including an initiative associated with creating hydrogen-powered foiling chase boats.
In November 2021, Hyundai revealed its intention to bring the hydrogen fuel cell-powered Xcient truck onto the roads. The company stated that hydrogen technology is more appropriate than battery-electric mobility as a heavy-duty, reliable, cost-effective substitute for diesel trucks. The company also clarified that instead of heavy batteries, using hydrogen meant more extended range, reduced refueling time, and greater payload.
One of the significant steps taken at the policy level was adopting the EU hydrogen strategy in July 2020 to develop green hydrogen. The European Clean Hydrogen Alliance was established around the same time to engage industry, public authorities, and civil society and coordinate investments related to hydrogen. In India, in January 2022, the Power and New & Renewable Energy Minister stated that The Green Hydrogen Policy for the country was set to be unveiled. This policy initiative proposes incentives such as free transmission for 25 years to boost production, among other programs, which are at early stages.
The Growing Significance of Hydrogen
The increase in the popularity of hydrogen in recent years is particularly noticeable through trends in hiring and deals. According to GlobalData, the number of job vacancies in ‘hydrogen’ across sectors increased fourteen-fold from 216 in 2019 to 3,133 in 2021. Similarly, the number of deals for hydrogen as a theme increased more than two-fold, from 109 in 2019 to 290 in 2021. It indicates the growing popularity of hydrogen as one of the primary sources for the adoption of renewable energy. This growth has been fueled by policy initiatives and corporate action, derived from the apparent benefits of hydrogen, as observed by these stakeholders. In the coming years, hydrogen could significantly affect both mobility and the energy supply landscape.
Related Data & Insights
Still looking?
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Explorer
Access more premium companies when you subscribe to Explorer