By 2050, low-carbon hydrogen demand could account for over 75% of total hydrogen demand. In the next few years, nearly all new hydrogen production coming online is expected to be low-carbon hydrogen, coinciding with an expected phaseout of grey hydrogen. To meet these projections, the production of hydrogen and its derivatives will have to overcome challenges, including technology scalability, rising project costs and limited electrolyser capacities. In addition, infrastructure build-out for large-scale hydrogen use - including pipelines and import/export terminals – will need to take place to ensure low-carbon hydrogen supply can be traded and transported to meet demand. And, at the same time as accelerating low- and no-emission hydrogen production, driving hydrogen offtake across sectors at scale, such as heavy industry and transportation, will be key to realising hydrogen’s potential in the energy transition.

The global hydrogen market is forecast to grow to over US$1.4 trillion annually by 2050, with green hydrogen supply accounting for most of it. A 2023 Deloitte report projects developing countries will account for nearly 70% of the market, creating as many as 1.5 million jobs per year between 2030 and 2050, and up to two million jobs per year globally between 2030 and 2050. Opportunities to benefit from the economic stimulus of a new hydrogen economy will require supportive policies and regulations, to build the required capabilities and ensure a competitive local industry that can meet global demand.

As national hydrogen strategies, roadmaps and targets are embedded into energy strategies, continued and increased government and private sector support is needed to advance the hydrogen market. Progress must still be made against the challenges of technology, and infrastructure costs for producing and using hydrogen, demand generation for low emission hydrogen and incentivising policy to de-risk investment. Technological innovation, accelerated project deployment, enabling national and international regulatory frameworks, the development of global certification and reporting methodologies, will all have roles in delivering the benefits of a low-carbon hydrogen economy.