The industrial sector is the leading hydrogen consumer, with 87.1 million tonnes of hydrogen consumed in 2020. Hydrogen is used in refineries, chemical industry, and steelmaking, all categorised as “hard to abate” sectors. However, several barriers impede green hydrogen’s full contribution to the industrial sector, including cost, technical, policy, lack of demand and carbon leakage risk.
The report “Green Hydrogen for Industry – A Guide to Policy Making” from the International Renewable Energy Agency (IRENA) provides a basis for understanding the challenges and policy solutions. It highlights the range of policy options available, including mandates, carbon pricing, carbon leakage measures, support schemes and market creation measures and complements these policies with country examples. The report separates policy recommendations into various stages to formulate appropriate policy pathways most suitable to a country’s level of deployment of green hydrogen.
Access the report here