THE International Chamber of Shipping (ICS) unveiled a new report highlighting the substantial growth potential for hydrogen as a clean energy carrier.
The study, authored by German energy economics professor Stefan Ulreich, was launched at the Malaysia Maritime Week 2024 (MMW24), which took place from July 30–August 2 at the Kuala Lumpur Convention Centre in Kuala Lumpur.
The report “Turning hydrogen demand into reality: Which sectors come first?” focuses on the potential of clean hydrogen to function as an energy carrier and feedstock to decarbonize multiple sectors, especially hard-to-abate sectors.
Guy Platten, secretary general of the International Chamber of Shipping. PHOTO FROM ICS WEBSITE
The report says that to meet future hydrogen demand, the scale of renewable electricity demand for green hydrogen production is unprecedented and leads to once-in-a-generation opportunities and challenges.
Guy Platten, secretary general of the ICS, said, “For global hydrogen demand to keep the net-zero by 2050 scenario within reach, demand for hydrogen-based fuel sources would need to scale five times from current levels to reach approximately 500 million tonnes from 2030 to 2050.”
“One of the main takeaways of this report is the high variability in potential demand. [The] industry will dominate the hydrogen demand. Shipping, however, can play a key role as an enabler to the hydrogen economy,” Platten said.
The report highlights three economies as the main markets to drive hydrogen demand initially: South Korea, Japan and the EU. Europe has a target of 20 million tonnes of hydrogen per year by 2030, with half of that volume to come from imported sources. The fleet must increase by up to 300 vessels for the EU2030 target.
According to the International Energy Agency, hydrogen use is expected to remain static and within current industrial use cases into 2030.
However, to go beyond the current hydrogen demand by existing sectors, the report finds that infrastructure, enabling regulation and power access barriers must be addressed for new sectors to begin hydrogen uptake.
Ulreich, a professor of energy economics at Biberach University of Applied Sciences, emphasized the importance of developing production and transportation infrastructure, with the maritime industry playing a pivotal role in connecting hydrogen surplus regions with consumption hubs.
He said, “Key for the realization of a future hydrogen economy is the infrastructure for production, but also transportation infrastructure. The maritime industry will play a key role by connecting the hydrogen surplus regions with the high-consumption areas.”
“However, this necessitates port infrastructure for loading/unloading and pipeline transport from the port to the consumers. A coordinated action would help most to deliver this,” Ulreich added.
The study predicts a surge in hydrogen shipping, with up to 411 or 500 new vessels required to transport an additional 30 million tonnes of hydrogen globally.
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