Since the industrial age, we have seen revolutionary changes such as the transitions from from steam engine to internal combustion, coal to oil and fax to email, These step-change improvements have driven significant productivity gains and it has been important to stay ahead of these transitions to maintain a competitive advantage.
Today, there is a large energy transition underway from fossil fuels to renewable energy, which now represents the lowest cost for delivering electricity in many markets. The jaw dropping decline in renewable energy prices (required to generate green hydrogen) coupled with similar lower cost for hydrogen generation equipment is leading to growing confidence in the use of hydrogen to decarbonize large markets.
Over the last decade, leading companies in a wide variety of industries have been proving out the use of hydrogen in their operations using smaller 1-2MW projects. These pilot projects have supported the potential of hydrogen as the fuel of the future. As a result, countries representing 70% of the world GDP have incentives in place to accelerate the use of hydrogen.
The Institute for Energy Economics and Financial Analysis (IEEFA) estimates there are 50 green hydrogen projects under development worldwide. Those projects have a planned annual production capacity of 4 million tons of hydrogen and a total renewable power capacity of 50 GW, with a combined capital cost estimated at $75 billion, according to the Ohio-based think tank.