Some of the key highlights of the report “ISA World Hydrogen Outlook” launched by the International Solar Alliance (ISA) are:
- Global hydrogen demand is expected to increase by 50 per cent, reaching 150 million metric tonnes per annum (MMTPA) from 100 MMTPA, between 2024 and 2030, driven by clean hydrogen; however, several regions are likely to encounter significant challenges. Emerging Market and Developing Economies (EMDEs) are expected to host 25 to 30 per cent of the announced green hydrogen projects by 2030.
- The increase in demand for hydrogen is envisaged to be driven by both existing consuming sectors such as refineries, fertilisers, and methanol, as well as emerging sectors such as transport (road, shipping, aviation), steel and other industries which are expected to be unlocked with clean hydrogen.
- High Levelised Cost of Hydrogen (LCOH) is expected to hinder widespread offtake of green hydrogen. LCOH itself is a function of intermittency of power (affecting electrolyser utilisation), cost of power and financing costs, in addition to electrolyser capital costs.
- To unlock domestic offtake and international trade, countries must reduce LCOH by leveraging lowcost RE, advancing electrolyser R&D, and developing hydrogen hubs to achieve economies of scale, or consider sourcing RE and GH from nations already implementing such strategies.
- Infrastructure, diversity in end-use, scale, integrated and collaborative approach are the pillars for a cost-competitive, and holistic green hydrogen ecosystem development. Global momentum is building in domestic green hydrogen equipment manufacturing, covering electrolysers, storage tanks, and fuel cells. While China still accounts for around 50–55 per cent of electrolyser production, regions such as the EU, USA, Japan, and South Korea are working to establish domestic manufacturing ecosystems.
- Green hydrogen innovation is also advancing through increasing use of digital technologies such as AI in driving material and technology breakthroughs as well as digital solutions transforming system-level operations. AI is now central to this evolution—accelerating research through predictive modeling, virtual prototyping, and advanced analytics. Tools like Digital Twins enable plant simulations, operational optimisation, safety validation, and pre commissioning checks, reducing costs and timelines while improving reliability.
Access the report here
