Hydrogen Market Update - The Hydrogen Economy in 2023 - Energy Transition Report (condensed version)

Rystad Energy dives into the hydrogen economy with our Energy Transition Report in January. We look back at 2022 and provide an outlook based on the latest developments in hydrogen and its derivatives, such as ammonia and methanol. In 2022, announcements for hydrogen and derivatives kept almost the same pace as in 2021, adding 22.5 million tonnes to the overall pipeline versus nearly 26 million tonnes in 2021. Green hydrogen dominated again, accounting for 87% of the announced capacity, with little movement from other production methods such as methane pyrolysis amid a wild natural gas market. Natural gas prices in Europe also pushed fossil-based hydrogen production to extreme highs – up to $14/kg from the usual level of $1-$2/kg of H2 in past years – making hydrogen from renewable electrolysis competitive for the first time in recent years. Movement on the hydrogen demand side shows progress and development, from shipping industries to steel production and other uses. While talks around hydrogen use in residential heating are cooling down, momentum picked up again for hydrogen-fueled heavy-duty transport use.