Published during COP27, “Accelerating Hydrogen Deployment in G7: Recommendations for the Hydrogen Action Pact,” sees some of the most favourable conditions like access to capital, presence of heavy industry, availability of renewable sources, existing local green hydrogen industry and technical know-how in G7 countries.
The commitment by G7 to reach net zero emissions by 2050 will require a significant deployment of green hydrogen. This also centre-stages the decarbonisation of end uses and hard-to-abate sectors like chemical production, steelmaking, long-haul aviation and shipping.
Continuously low renewable power costs have made green hydrogen an attractive, if not the only decarbonisation option
IRENA said.
The new report encourages a G7 framework to align policy making and make concrete commitments to harmonise hydrogen standards and certification, share lessons from early implementation, balance the focus on supply with demand creation, promote hydrogen uptake in industrial applications and conduct more targeted collaboration with industry stakeholders and civil society.
While G7 has the potential to consume around 28 per cent of global hydrogen, the aggregated hydrogen demand for G7 members was about 24.2 million tonnes of hydrogen in 2020, mostly from fossil fuels. The United States was the largest consumer in G7, closely followed by the European Union
Recommendations for hydrogen uptake
#1 Align efforts on standards and certification: The G7 can lead in this area by driving the effort to agree on a common methodology to measure GHG emissions across the value chain and consolidating those into an international standard. The G7 can lead in this area by driving the effort to agree on a common methodology to measure GHG emissions across the value chain and consolidating those into an international standard.
#2 Collaborate internationally and share lessons from early implementation: G7 members are among the first movers in the new hydrogen sector, with specific policies and incentives in place. This presents the opportunity to share their experiences with followers and observers to enable a faster uptake of best practices, including sustainability and social aspects.
#3 Balance focus on supply with demand creation: Within the G7 framework, members should signal their common intent through clear support with prioritisation for specific end uses and create a bulk demand for hydrogen in the most critical hard-to-abate applications.
#4 Promote hydrogen uptake in industrial applications: The G7 is already tackling the industrial sector through the Industrial Decarbonisation Agenda. This includes hydrogen as part of a broader decarbonisation portfolio and tackles several areas covering market regulation, decarbonisation standards development, investment, procurement strategies and joint research.
#5 Conduct outreach to civil society and industry stakeholders: Awareness is a stepping stone towards creating public acceptance. This is essential in generating the legitimacy of the policies and public investment choices of a new product, such as hydrogen.