Clean hydrogen is poised for significant growth in 2024, with analysts predicting a surge in production and investment. However, experts warn that a robust regulatory framework is crucial to propel the industry forward and ensure its long-term success.
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Market Growth Predictions:
- Global clean hydrogen demand is anticipated to reach 1.2 million tons in 2024, a 50% increase from 2023.
- Investment in clean hydrogen projects is expected to surpass $20 billion in 2024, driven by government incentives and private sector commitments.
- The United States and the European Union are expected to remain the leading markets for clean hydrogen, while Asia-Pacific and the Middle East are also showing strong growth potential.
Key Drivers of Growth:
- Decarbonization goals: Governments and corporations around the world are increasingly setting ambitious decarbonization goals, driving demand for clean hydrogen as a low-carbon fuel source.
- Falling costs: The cost of clean hydrogen production is declining rapidly, making it a more viable alternative to fossil fuels.
- Technological advancements: Continuous advancements in hydrogen production, storage, and transportation technologies are further boosting the industry’s growth.
Despite the positive outlook, several regulatory challenges need to be addressed to fully unlock clean hydrogen’s potential. These include:
- Standardization: Lack of international standards for hydrogen production, storage, and delivery creates uncertainty for investors and hinders market growth.
- Infrastructure development: A robust hydrogen infrastructure is needed to support large-scale production and transportation, requiring significant investment and coordination.
- Certification and regulations: Clear regulations and certification processes are necessary to ensure the safety and quality of clean hydrogen production and usage.
Clyde & Co LLP, a leading international law firm, recently published a report highlighting the importance of regulatory frameworks for clean hydrogen development. The report states:
“Without a clear regulatory environment, it will be difficult to attract the necessary investment and ensure the long-term viability of the clean hydrogen industry.”
The report further emphasizes the need for international collaboration to develop harmonized standards, regulations, and certification processes.
2024 is expected to be a pivotal year for clean hydrogen, with the potential for significant market growth. However, overcoming regulatory hurdles will be essential to ensure the industry reaches its full potential and contributes to the global clean energy transition.