A growing number of countries are releasing national strategies and adopting concrete policies to support first movers. Novel applications in heavy industry and long-distance transport account for less than 0.1% of hydrogen demand, whereas they account for one-third of global hydrogen demand by 2030 in the Net Zero Emissions by 2050 (NZE) Scenario. On the demand side, hydrogen demand keeps growing, but remains concentrated in traditional applications. The announcements for new projects for the production of low-emission hydrogen keep growing, but only 5% have taken firm investment decisions due to uncertainties around the future evolution of demand, the lack of clarity about certification and regulation and the lack of infrastructure available to deliver hydrogen to end users.
Hydrogen and hydrogen-based fuels can play an important role in the decarbonisation of sectors where emissions are hard to abate and alternative solutions are either unavailable or difficult to implement, such as heavy industry and long-distance transport.
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