Global Hydrogen Trade Essential for Cost-Effective Transition to Clean Energy, New Report by Hydrogen Council and McKinsey Finds.

A new Hydrogen Council summary report has stated that global hydrogen trade is crucial for accelerating a more cost-effective transition to a hydrogen economy. The report, co-authored by McKinsey & Company, highlights the importance of global hydrogen adoption in spurring adoption and accelerating the transition towards a more environmentally friendly future. It also highlights the need to supply the world with the most competitive sources of clean hydrogen, particularly in regions where main hydrogen demand centers often align with areas ideal for renewable hydrogen production. New regulations and production incentives like the Inflation Reduction Act (IRA) in the US and the Renewable Energy Directive (RED III) in Europe have been introduced, resulting in larger clean hydrogen production cost differentials between geographic regions than previously thought. Long-distance transportation of hydrogen and derivatives could result in significant cost savings and reduce carbon abatement costs. The analysis also suggests that around half of the clean hydrogen produced by 2030 is expected to be transported across long distances, mostly via pipelines or shipments of clean ammonia replacing grey ammonia.