While the promise of a hydrogen economy has many governments and corporates excited, there are economic and practical challenges in its implementation. By 2050, estimated hydrogen production will require more than half of total electricity demand – so shouldn’t we prioritize its most economic and efficient use?
It's clearly been effective. By 2021, according to KPMG research, ten countries had hydrogen strategies in place including Australia, Chile, Finland, Germany, Norway, Portugal and Spain, plus the European Union .
That means that the central question should be how best to deploy green hydrogen. Rapid upscaling for hard to abate sectors like heavy industry and long-distance transport make sense. However it is in hydrogen’s potential as an energy storage option, whether for seasonal storage or for grid balancing, that it is perhaps most exciting. It could be used to improve network efficiencies and cut overall network costs dramatically..
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