The Hydrogen Council reveals first-of-a kind
study showing hydrogen’s contribution as a key pillar of the energy
transition
Regulatory News:
As global leaders gathered at COP 23 in Bonn, 18 key
leaders in their industry verticals, united in the Hydrogen Council
coalition, came together to launch first ever globally quantified
vision of the role of hydrogen, developed with support from
McKinsey. In addition to being a key pillar in of the energy
transition, the study shows that hydrogen has the potential to
develop US $2.5tn of business, creating more than 30 million jobs
by 2050.
Taking the Hydrogen Council’s vision for hydrogen to the next
level, the study entitled Hydrogen, Scaling up outlines a
comprehensive and quantified roadmap to scale deployment and its
enabling impact on the energy transition.
Deployed at scale, hydrogen could account for almost one-fifth
of total final energy consumed by 2050. This would reduce annual
CO2 emissions by roughly 6 gigatons compared to today’s levels, and
contribute roughly 20% of the abatement required to limit global
warming to two degrees Celsius.
On the demand side, the Hydrogen Council sees the potential for
hydrogen to power about 10 to 15 million cars and 500,000 trucks by
2030, with many uses in other sectors as well, such as industry
processes and feedstocks, building heating and power, power
generation and storage. Overall, the study predicts that the annual
demand for hydrogen could increase tenfold by 2050 to almost 80 EJ1
in 2050 meeting 18% of total final energy demand in the 2050
two-degree scenario. At a time when global populations are expected
to grow by two billion people by 2050, hydrogen technologies have
the potential to create opportunities for sustainable economic
growth.
“The world in the 21st century must transition to widespread low
carbon energy use,” said Takeshi Uchiyamada, Chairman of Toyota
Motor Corporation and co-chair of the Hydrogen Council. “Hydrogen
is an indispensable resource to achieve this transition because it
can be used to store and transport wind, solar and other renewable
electricity to power transportation and many other things. The
Hydrogen Council has identified seven roles for hydrogen, which is
why we are encouraging governments and investors to give it a
prominent role in their energy plans. The sooner we get the
hydrogen economy going, the better, and we are all committed to
making this a reality.”
Achieving such scale would require substantial investments;
approximately US$20 to 25 billion annually for a total of about
US$280 billion until 2030. Within the right regulatory framework –
including long-term, stable coordination and incentive policies –
the report considers that attracting these investments to scale the
technology is feasible. The world already invests more than US$1.7
trillion in energy each year, including US$650 billion in oil and
gas, US$300 billion in renewable electricity, and more than US$300
billion in the automotive industry.
“This study confirms the place of hydrogen as a central pillar
in the energy transition, and encourages us in our support of its
large-scale deployment. Hydrogen will be an unavoidable enabler for
the energy transition in certain sectors and geographies. The
sooner we make this happen the sooner we will be able to enjoy the
needed benefits of Hydrogen at the service of our economies and our
societies,” said Benoît Potier, Chairman and CEO, Air Liquide.
“Solutions are technologically mature and industry players are
committed. We need concerted stakeholder efforts to make this
happen; leading this effort is the role of the Hydrogen
Council.”
1 Symbol for the exajoule, an SI unit of work or energy
equal to 1018 joules.
The launch of the new roadmap came during the Sustainability
Innovation Forum in the presence of 18 senior members of the
Hydrogen led by co-chairs Takeshi Uchiyamada, Chairman of Toyota
and Benoît Potier, Chairman and CEO, Air Liquide and accompanied by
Prof. Aldo Belloni, CEO of The Linde Group, Woong-chul Yang, Vice
Chairman of Hyundai Motor Company and Anne Stevens, Board Member of
Anglo American. During the launch, the Hydrogen Council called upon
investors, policymakers, and businesses to join them in
accelerating deployment of hydrogen solutions for the energy
transition. It was also announced that Woong-chul Yang of Hyundai
Motor Company will succeed Takeshi Uchiyamada of Toyota in the
rotating role of the Council’s co-chair and preside the group
together with Benoît Potier, Chairman and CEO Air Liquide, in 2018.
Mr Uchiyamada is planning to return as Co-chairman in 2020,
coinciding with the Tokyo Olympic and Paralympic Games, an
important milestone for showcasing hydrogen society and
mobility.
Hydrogen, scaling up – Key
takeaways2
18% of final energy demand
6 Gt annual CO2 abatement
$2.5tn annual sales (hydrogen and equipment) 30 million jobs
created
About the Hydrogen Council:
Launched at the World Economic Forum in Davos in early 2017, the
Hydrogen Council is a first-of-its-kind global CEO initiative to
foster the role of hydrogen technologies in the global energy
transition. Current members include 18 leading multinationals - Air
Liquide, Alstom, Anglo American, Audi, BMW GROUP, Daimler, ENGIE,
General Motors, Honda, Hyundai Motor, Iwatani, Kawasaki, Plastic
Omnium, Royal Dutch Shell, Statoil, The Linde Group, Total, and
Toyota – as well as 10 dynamic players from across the value chain
- Ballard, Faber Industries, Faurecia, First Element Fuel (True
Zero), Gore, Hydrogenics, Mitsubishi Corporation, Mitsui & Co,
Plug Power, and Toyota Tsusho. The coalition collectively
represents total revenues of over € 1.5 trillion and more than 2
million jobs around the world.3 To find out more:
www.hydrogencouncil.com.
About Hydrogen Council meetings at COP 23:
The Council will gather at COP 23 to conclude the first year of
its activity. While in Bonn on 13-14 November 2017, CEOs and other
senior representatives will participate in a range of high-level
roundtables, interactions with policy-makers as well as the media
and the broader stakeholder community.
The Hydrogen Council is led by two Co-Chairs from different
geographies and sectors, elected by Steering Members for a two-year
term, each year one of the two Co-chair mandates is renewed for
continuity.
About Hydrogen
Hydrogen is a versatile, clean, and safe energy carrier that can
be used as fuel for power or in industry as feedstock. Generating
zero emissions at point of use, it can be produced from (renewable)
electricity and from carbon-abated fossil fuels, thereby achieving
completely zero-emission pathways. The uses for hydrogen continue
to grow as it can be stored and transported at high energy density
in liquid or gaseous form and can be combusted or used in fuel
cells to generate heat and electricity. This versatility confers to
hydrogen a key enabling role all together in the transport, the
industry and the residential sectors, as well as for the
large-scale storage of renewable energies, making it a promising
solution to overcome the challenges of the energy transition.
2 SOURCE: Hydrogen Council; IEA ETP Hydrogen and Fuel Cells CBS;
National Energy Outlook 2016
3 Company figures from financial years 2015 and 2016.
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version on businesswire.com: http://www.businesswire.com/news/home/20171113005999/en/
For further information about the event and related media
opportunities:Hydrogen Council Press Office:Harriet Barham, +32
473 410 159Harriet.barham@fticonsulting.com
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