GLOBAL HYDROGEN PRODUCTION

TOTAL PRODUCTION: As of 2022, global hydrogen production was around 95 million tonnes (Mt) per year.

PRODUCTION METHODS:

GREY HYDROGEN: Produced from natural gas or coal, accounting for about 95% of total hydrogen production. This process emits significant CO₂.

BLUE HYDROGEN: Grey hydrogen but with Carbon Capture and Storage (CCS) to reduce emissions during the production of the grey hydrogen.

GREEN HYDROGEN: Produced via electrolysis using renewable energy, currently less than 1% of total production. Zero carbon emissions from the production of the hydrogen.

PINK HYDROGEN: Hydrogen produced from nuclear energy.

COST OF HYDROGEN PRODUCTION

GREY HYDROGEN: Approximately $1-$2 per kilogram, but with high carbon emissions. 9-12 kg of CO₂ per 1 kg of H₂

BLUE HYDROGEN: Costs around $1.5-$3 per kilogram, depending on the cost of carbon capture. 1-2 kg of CO₂ per 1 kg of H₂

GREEN HYDROGEN: Currently costs between $4.5 and $6.5 per kilogram, with projections to reduce to $2.5-4 per kilogram by 2030. 0 kg of CO₂ per 1 kg of H₂

PINK HYDROGEN: Cost of $3-$8 per kg/H2. 0 kg of CO₂ per 1 kg of H₂

GREEN HYDROGEN

Green hydrogen is an essential piece of the clean energy mix that will be required to achieve the Net Zero targets set for globally for 2030 and 2050. According to IRENA (International Renewable Energy Agency), green hydrogen is to account for 14% of final energy consumption by 2050 and to abate 12% of emissions. To achieve this scenario will require scaling up electrolyser capacity from 1 gigawatt (GW) at the beginning of 2023 to 5,722 GW by 2050, growth unlike any other market.

The demand for green hydrogen is global and the leading industry sectors are heavy industry such as steel production, chemicals and mining and transportation and power generation as a stored renewable energy to provide grid stability or off-grid electricity supply.

As of 2024 the cost of producing green hydrogen per kilogram (LCOH) according to the Hydrogen Council and McKinsey & Company ranges from $4.50 to $6.50. The high production cost of green hydrogen is due to the need for high levels of renewable energy and the capital and operational cost of electrolysers.

In 2023, global hydrogen production reached approximately 95 million tonnes. This production is primarily dominated by traditional methods using fossil fuels, such as steam methane reforming (SMR), which accounts for the majority of hydrogen output. However, the production of low-emission or green hydrogen, which is generated through electrolysis using renewable energy, is growing as efforts to decarbonize various sectors intensify.

Green hydrogen production remains a small fraction of the total, but it is expanding rapidly. Governments and industries worldwide are investing heavily in infrastructure and technology to increase green hydrogen output. Announcements and plans for future projects indicate significant growth, aiming to make green hydrogen a cornerstone of global energy strategies by mid-century.