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December 8, 2020

UN launches Green Hydrogen Catapult to halve production costs

Some of the world’s largest energy companies have signed up to the UN Green Hydrogen Catapult to bring down the cost of hydrogen production.

By Matt Farmer

Some of the world’s largest energy companies have signed up to the UN Green Hydrogen Catapult to bring down the cost of hydrogen production.

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Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
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The project aims to drive down the cost of hydrogen to $2/kg by 2026, approximately half its current price. The partner companies aim to do this with 25GW of green hydrogen production by 2026, approximately 50 times more than is currently produced.

The project cites a study by business group Hydrogen Council, which states that $2/kg represents a tipping point in hydrogen production. After this, increased use of hydrogen will allow markets to sustain a profitable hydrogen production industry.

The partners believe this rate of change will allow the hydrogen market to develop at the necessary pace to comply with Paris Agreement goals.

The companies involved include Danish winds turbine manufacturer Ørsted and Spanish power giant Iberdrola. Renewable energy developers ACWA Power, from Saudi Arabia, and CWP Renewables from Australia, will also take a leading role. Other proponents include Italian gas network Snam, chemical company Yara International, and Chinese wind turbine manufacturer Envision.

A press release by the partners says they will focus on work toward developing project capacity, tool development, solving early market challenges, and promoting collaboration. They estimate this will require $110bn of investment, generating 120,000 jobs. As such, the project comes as a suggested investment for recovery from Covid-19.

UN scheme pushes further than other hydrogen plans

The project is part of the UN Race to Zero, an initiative urging companies to commit to environmental action outside of governmental frameworks.

ACWA Power CEO Paddy Padmanathan said: “We believe the private sector can deliver green hydrogen at less than $2/kg within four years. From an industry perspective, we see no technical barriers to achieving this, so it’s time to get on with the virtuous cycle of cost reduction through scale-up.”

ACWA Power also committed to limiting its emissions in line with a 1.5°C scenario.

Snam CEO Marco Alverà said: “We believe that this new ‘coalition of the willing’ composed of leading companies in the private sector, with expertise, commitment and confidence in hydrogen’s potential, will play an important role in fostering cooperation and help to deliver the projects necessary to bring green hydrogen costs to the $2/kg tipping point even sooner than expected.”

Similar projects have recently started developing green hydrogen supply chains in Europe, Japan and Saudi Arabia. Also today, Norwegian state-owned energy giant Equinor joined the NortH2 project, which aims to develop a green hydrogen supply network around north-west Europe. The project, led by oil giant Shell, aims to produce one million tonnes of hydrogen using 10GW of offshore wind by 2030.

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Free Report
img

Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

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