Hydrogen is becoming a more viable fuel source for businesses, particularly those in the transportation and logistics sectors, as companies try to reach their net-zero emissions targets, according to Engie Impact, the sustainability consulting division of French utility Engie SA.
The increased ground gained in Asia, especially among miners and transporters, is a "strong signal" of hydrogen's potential, Mathias Lelievre, chief executive officer of Engie Impact, said Tuesday in Singapore during Ecosperity Week 2022, a conference aimed at accelerating ideas around Asia's green transition.
Hydrogen continues to attract considerable interest amid countries' attempts to cut emissions from hard-to-reduce sectors such as industry, heavy transport and heating, BloombergNEF said in a report earlier this month. As of April, nearly 30 countries had national hydrogen strategies, up from just three in 2019.
According to McKinsey & Co, there are about 680 hydrogen projects worth $240 billion worldwide, up from about 520 projects worth $160 billion six months ago.
Lelievre said that among some of the drawbacks of hydrogen is the ability to ramp up production.
While hydrogen is energy dense, that also means it is volatile and therefore potentially dangerous, and it can be difficult to store. Furthermore, not all hydrogen is created equal.
Green hydrogen is hydrogen generated from renewable sources such as wind, solar or hydro, while gray hydrogen is derived from natural gas and produced from fossil fuels, making it the least renewable form of gas.
Engie is targeting 4 gigawatts of green hydrogen production capacity and 700 kilometers of dedicated hydrogen networks by 2030, according to its website.