June 21, 2023
(press release)
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June 14 -- The clean hydrogen market is expected to surpass the value of the liquid natural gas trade by 2030 and continue growing to reach $1.4 trillion annually by 2050, Deloitte’s 2023 global green hydrogen outlook indicated. The majority of this growth is anticipated to be driven by green hydrogen, which is produced by using renewable energy to split hydrogen atoms from water molecules through electrical currents. Deloitte’s 2023 global green hydrogen outlook suggests that clean hydrogen presents a significant opportunity for sustainable development in developing countries, potentially accounting for nearly 70 percent of the $1.4 trillion market in 2050 and supporting up to 2 million jobs worldwide each year from 2030 to 2050. In terms of environmental impact, clean hydrogen has the potential to reduce cumulative CO2 emissions by up to 85 gigatons by 2050, which is more than twice the global CO2 emissions in 2021. Deloitte’s outlook provides detailed analysis of the cost, production, and market aspects of hydrogen, including an examination of the business challenges involved in implementing clean hydrogen successfully. It also offers insights into various market dynamics, such as optimal infrastructure sizing, investment requirements, and technology choices. The global hydrogen trade is projected to generate over $280 billion in annual export revenues by 2050, with North Africa expected to benefit the most, reaching $110 billion per year due to its significant export potential. To optimize the global value of clean hydrogen, substantial investments in the clean hydrogen supply chain are necessary. Deloitte estimates that more than $9 trillion in cumulative investments will be required in the global clean hydrogen supply chain to achieve net-zero compliance by 2050, with developing economies accounting for $3.1 trillion of this investment. Jennifer Steinmann, Deloitte Global Sustainability & Climate practice leader, emphasized the importance of supply chain investments. While the financial aspect may not pose a problem, as the average annual investment required is significantly less than what was spent on oil and gas production in 2022 globally, there are challenges in meeting the projected demand for clean hydrogen. The Deloitte outlook indicates that despite the expected growth, based on current project announcements, the global community would only be able to fulfill a quarter of the projected demand for clean hydrogen by 2030.
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