The past two years have seen hydrogen explode in popularity. Many countries and regions, particularly in the European Union, have drafted and adopted hydrogen strategies recognising the molecule as the missing piece to the jiggsaw puzzle of climate neutrality. For others, hydrogen offers the promise of growing export revenues, or replacing current exports of fossil commodities.
Clean hydrogen is essential for climate neutrality but realising a competitive and sustainable hydrogen sector is a complex, multi-faceted undertaking which will confront the policymaker with opportunity costs that have far reaching implications for infrastructure, industrial and trade policies. On top of that, growing a clean hydrogen sector is bound to require additional policy support . Despite the challenges and uncertainties, the carbon clock is ticking, so decisions to implement the strategies have to be taken soon. In 12 Insights on Hydrogen, Agora Energiewende took stock of the most recent debates and analyses in an effort to provide more clarity on the most important uncertainties.
Based on our findings, we identify several priority applications for growing hydrogen demand, as well as a supply framework that reconciles the needs of domestic industries with international trade diplomacy.