SHAPING SUSTAINABLE INTERNATIONAL HYDROGEN VALUE CHAINS

Table of Contents

• Sugarcane Bioenergy In Southern Africa – Economic potential for sustainable scale-up 1
• Contents 3
• Abbreviations 3
• Abbreviations 5
• Executive summary 6
• Recommendations 8
• 1. Introduction 12
• 1.1 Developing sustainable international hydrogen value chains 12
• 1.2 Scope of the report 14
• 2. Hydrogen production and demand: Now and in the future 16
• 2.1 Current and future global hydrogen demand and its implications for trade 16
• 2.2 Potential for global, renewable hydrogen production 19
• 3. Environmental aspects of renewable hydrogen production 23
• 3.1 Emission intensity factors for hydrogen production 23
• 3.2 Electricity supply options for electrolysis-based hydrogen production 27
• 3.3 Impact of incentive schemes and regulations on hydrogen market developments 31
• 3.4 Water supply 35
• 4. Enablers in the transportation and trade of renewable hydrogen: A hydrogen carrier technology update 37
• 4.1 Ammonia 38
• 4.2 Liquid hydrogen 40
• 4.3 LOHCs 42
• 4.4 Methanol 43
• 4.5 Comparing hydrogen carriers 45
• 5. Co-benefits of renewable hydrogen production for developing countries 48
• 5.1 Energy access 48
• 5.2 Opportunities for industrial development 50
• 5.3 Jobs in the renewable hydrogen sector and developing a highly-skilled workforce 52
• 6. Hydrogen strategies of potential renewable hydrogen suppliers 55
• 6.1 Mapping selected strategies 56
• 6.2 Navigating the strategic objectives of potential importing and exporting countries 69
• 7. The way forward and conclusions 70
• 7.1 Comprehensive sustainability for renewable hydrogen value chains 70
• 7.2 Mitigating environmental risks and maximising opportunities 71
• 7.3 Considering the role of hydrogen derivatives in building markets 71
• 7.4 Collaborating on local value creation with a focus on developing countries 72
• 7.5 Promoting strategic partnerships – both global and interregional 73
• References 74
• Figure 1 Selected dimensions and aspects of sustainable international hydrogen value chains 14
• Figure 2 Breakdown of total final energy consumption by energy carrier under IRENA’s 1.5°C Scenario 16
• Figure 3 Global clean hydrogen supply in 2020, 2030 and 2050 17
• Figure 4 Renewable hydrogen priority setting 19
• Figure 5 Global levelised cost of hydrogen (LCOH) in 2030 (top) and 2050 (bottom) 20
• Figure 6 Green hydrogen and its derivatives: Trade projection by 2050 in the 1.5°C scenario 22
• Figure 7 Global imports of hydrogen and its derivatives, ammonia and methanol 22
• Figure 8 Renewable-based hydrogen value chain and CO2 emission scopes 24
• Figure 9 Overview of emissions intensity factors for different hydrogen production pathways 26
• Figure 10 Emissions intensity for the production of hydrogen (kg of CO2 per kg of hydrogen) 27
• Figure 11 GHG footprint of hydrogen produced with different electricity sources and current and future produced average grid electricity via PEM electrolysis 28
• Figure 12 Set-ups for hydrogen production via electrolysis 29
• Figure 13 Comparison of average water withdrawal and consumption intensities by hydrogen production technology 35
• Figure 14 Ammonia shipping infrastructure, including a heat map of liquid ammonia carriers and ammonia port facilities in 2017 39
• Figure 15 Energy consumption along the supply chain for selected carrier pathways 46
• Figure 16 Energy cost of shipping hydrogen over different carriers 47
• Figure 18 Hydrogen MOUs, as of October 2023 56
• Table 1 EU criteria for proving renewability of hydrogen production based on method of renewable energy provision 29
• Table 2 Proposed US rules for the production of clean hydrogen 30
• Table 3 IRA tax credit tiers 33
• Table 4 Number of ships required to transport 1 Mt of hydrogen using LOHC 42
• Table 5 Overview of hydrogen carriers 45
• Table 6 Assessment of employment effects in developing countries 54
• Table 7 Comparing the export orientation of selected strategies 58
• Table 8 Comparing the end-use priorities in selected strategies 61
• Table 9 Comparing the policy tools of selected strategies 63
• Box 1 LCA as a tool for emissions accounting 24
• Box 2 Relevance for certification 25
• Box 3 The EHB 32
• Box 4 Quality infrastructure for robust and sustainable hydrogen value chains 34
• Box 5 Producing green ammonia in Namibia 40
• Box 6 South-South co‑operation on renewable hydrogen development 51
• Box 7 Estimating job creation based on industry turnover across the value chain 52
• Box 8 The case of Singapore 57
• Box 9 Land auctions in Oman 62
• Box 9 Mini-grids for islands 64