- The IEA states that governments need to raise investments in hydrogen to meet net-zero targets.
- Governments need to incorporate new sectors into hydrogen use to facilitate the development of the storage chain.
The International Energy Agency (IEA), in the latest report, has stated that governments need to increase the rate of investment in hydrogen production and storage chains to meet net-zero. According to the Paris-based organisation, countries and investors gave only raised 25 per cent of the $1.2 trillion needed to develop and deploy hydrogen by 2030 as part of the global efforts to met net-zero. The IEA states that governments need to direct efforts towards getting hydrogen into more sectors while developing technology to reduce the price of green hydrogen production.
The IEA report notes that while hydrogen is light, storable and energy-dense, and produces no direct emissions of pollutants or greenhouse gases when used as a fuel, the high cost of production has inhibited expanded use. Hydrogen produced from renewable sources can cost as much as seven times as natural gas without carbon capture. However, the report adds that new technologies and economies of scale could help bridge the gap.
The IEA recommends that governments should incorporate new consumption sectors that will facilitate the development of needed storage, transmission, and charging facilities rather than implement policies that only focus on production. Currently, 17 governments have developed hydrogen strategies, while over 20 are currently developing plans, a big increase from the only three who had strategies in 2019.