As support for clean hydrogen as a reliable, sustainable energy source strengthens, the market for green hydrogen is expected to grow to $1.4 trillion per year by 2050 while supporting up to 2 million jobs globally per year between 2030 and 2050, a new report by Deloitte finds.
Green hydrogen—produced by splitting hydrogen atoms from water molecules using electrical currents powered by renewable energy—is poised to help drive the bulk of the growth according to Deloitte’s new report “Green hydrogen: Energizing the path to net zero. Deloitte’s 2023 global green hydrogen outlook.”
The projections come from Deloitte’s Hydrogen Pathway Explorer (HyPE) model, which delivers one of the most comprehensive analyses of the supply of hydrogen globally. This research shows that clean hydrogen can deliver up to 85 gigatons in reductions to cumulative CO2 emissions by 2050, more than twice global CO2 emissions in 2021. Deloitte’s outlook provides extensive detail into the cost, production, and market of hydrogen, even analyzing the business challenges facing the successful implementation of clean hydrogen, and providing insights into various market dynamics, such as optimal infrastructure sizing, investment needs, and technology choices.
“This analysis reveals a compelling opportunity for private and public leaders to accelerate the green energy transition,” said Joe Ucuzoglu, Deloitte Global CEO. “While wind, solar, and other more traditional forms of renewable power are essential to a net-zero future, Deloitte’s research demonstrates how clean hydrogen can help tackle decarbonization of some of the world’s most emissions intensive and hardest-to-abate sectors, further mitigating the effects of climate change while fueling economic growth, particularly in developing countries.”