Tom Barlow-BrownA new report from the International Chamber of Shipping (ICS) highlights a significant opportunity in global hydrogen demand.
This is particularly within the heavy industry sector, which is expected to dominate until 2050. The report, launched at the Malaysia Maritime Week event, outlines the major role South Korea and Japan will play as the first key markets for hydrogen.
Titled “Turning hydrogen demand into reality: Which sectors come first?” the study was developed in collaboration with Professor Stefan Ulreich of Biberach University of Applied Sciences, Germany. It stresses the scale of renewable electricity required for green hydrogen production, presenting both challenges and opportunities. Analysis reveals that to meet a global increase of 30 million tonnes of hydrogen traded worldwide, the world fleet would need up to 411 additional hydrogen vessels.
ICS Secretary General Guy Platten emphasised the need for hydrogen demand to increase fivefold from current levels to maintain the net-zero by 2050 scenario. He noted that while heavy industry will dominate hydrogen demand, the shipping industry could be a crucial enabler. The report also identifies Europe as a primary market driving initial hydrogen demand, with the continent targeting 20 million tonnes annually by 2030, half of which will be imported. Meeting this demand will necessitate up to 300 additional vessels for the EU by 2030.
Platten highlighted the importance of supply chain expansion. ‘One thing is certain, readiness at ports and infrastructure development to remove barriers for maritime uptake will be crucial. This will allow for both the maritime and other sectors to move forward, adding energy-security and enhancing diversification,’ he said.
Professor Ulreich underlined the critical role of maritime infrastructure in connecting hydrogen-rich regions with high-consumption areas. This includes port facilities for loading and unloading hydrogen and pipeline transport from ports to consumers. The report anticipates a significant increase in the fleet required to transport hydrogen, with up to 411 new vessels needed for a global increase of 30 million tonnes of hydrogen.
The report highlights the potential of clean hydrogen to decarbonise various sectors, especially hard-to-abate ones. Currently, three-quarters of hydrogen use is concentrated in refining and chemical processes, predominantly produced from fossil fuels.
Hydrogen demand is expected to remain stable in current industrial uses until 2030, with significant growth projected from 2030 to 2050. By 2050, industrial sectors are expected to dominate hydrogen demand, although transportation sectors will also increase their share.
To meet the hydrogen demand targets, the report illustrates that global power systems will need to expand, with renewable electricity playing a key role. The will lead to an increased focus from governments and industry on R&D to reduce hydrogen costs and enhance the production and distribution.
The report underscores the variability in hydrogen demand scenarios, which creates uncertainty for businesses and investors. To reduce this uncertainty, clearer demand projections and supportive policies will be essential.
The report can be accessed here.
Image: Shutterstock
Ian Taylor
