Clean and versatile, hydrogen is a crucial fuel source for decarbonization and reducing global emissions. It has the potential to complement and enable other decarbonization pathways. Its importance lies in its ability to provide energy with zero greenhouse gas emissions, helping to mitigate the effects of climate change. Hydrogen fuel target markets are broad and diverse and include: FCEB Buses, FCEV Class 8 trucks, Ports, Warehouses, Fork Trucks, Data Centers, Electrical Power Generation, FCEV Commercial Light Utility, FCEV Car Fleets, Aviation Drones, Trains, Ships, Boats and Golf Carts.
Hydrogen has tremendous potential for providing 7 GT of annual abatement, equivalent to 20% of emissions if the current global warming trajectory continues. Additionally, 660 million MT of clean hydrogen will be required to reach net-zero by 2050, representing 22% of global final energy demand. To achieve this, there is a need for a large scale-up of clean hydrogen production in the coming decades, which can ultimately fulfill this decarbonization potential. Hydrogen can be a primary fuel source, complementing and enabling other decarbonization pathways such as direct electrification, energy efficiency measures, and biomass-based fuels.
There is a growing demand for hydrogen fuel and fuel cell vehicles, which is expected to increase significantly in the coming years. For instance, U.S. hydrogen FCEV sales are forecasted to nearly double over the next four years, driving increased demand for hydrogen fueling stations. Additionally, the expected increase in global hydrogen fuel cell sales from $3.9 billion in 2021 to $16.5 billion in 2025 demonstrates the growing interest in hydrogen as a fuel source. Annual U.S. hydrogen demand (all sources) is expected to increase from 11 million metric tons (“MT”) to 63 million MT from 2020 to 2050.
