From a broader perspective, investments in clean energy surged by 50% from 2019 to 2023, reaching a substantial $1.8 trillion in 2023. This upward trajectory is expected to continue as we strive to meet the ambitious target of 80% renewable energy contribution by 2030. The cumulative investment in clean energy is projected to be approximately $60 trillion from 2023 to 2050. In December 2023, the United Nations Climate Change Conference (COP28) culminated in a landmark agreement to phase out fossil fuels. This global accord calls for a significant escalation in efforts to triple renewable energy capacity and double energy efficiency improvements by 2030. Additionally, data from the International Renewable Energy Agency (IRENA) reveals that the cost of renewable technologies plummeted by 83% between 2010 and 2022, underscoring the economic viability of the clean energy transition.

Green renewable hydrogen is utilized for various purposes and is an ideal solution where electrification is not the only option. One notable derivative is green ammonia, which shows significant potential for both power generation and fertilizer use. Additionally, e-fuels derived from renewable hydrogen present a sustainable fuel alternative for the shipping and aviation industries. Renewable hydrogen also offers long-term energy storage solutions with discharge times ranging from hours to quarters and a high energy density of approximately 40 kWh/kg. Notably, it is one of the few solutions capable of storing over 100 GWh of energy. Although currently positioned as a premium technology, substantial efforts are being made by governments, consortiums, and private entities to address the energy trilemma of reliability, affordability, and sustainability.

Countries like the USA, the Netherlands, the UK, Germany, China, and India heavily invest in renewable hydrogen projects to achieve economies of scale and technological advancements. Initiatives like Europe’s RePowerEU and the Inflation Reduction Act (IRA) in the United States provide significant incentives for private-sector investment and encourage the adoption of renewable hydrogen. Consequently, global renewable hydrogen production is projected to reach 500 Mt/year by 2050.

There are several compelling reasons to consider renewable hydrogen a promising technology:

● It facilitates a clean energy transition.

● It provides high energy mass density.

● It is highly convenient for energy transition and supply chain development.

Battery energy vs. renewable hydrogen

Batteries are often recognized as reliable and cost-effective carriers for energy storage, offering stable operation. However, they fall short compared to renewable hydrogen in terms of discharge time (hours to days), storage capacity (approaching 100 MWh), and energy density (~0.3 kWh/kg).

Where batteries excel is in energy efficiency. They only lose about 25 to 30% of the total renewable energy sourced, significantly better than renewable hydrogen. This efficiency makes batteries highly competitive in certain applications, such as passenger cars and the automotive sector in general. Many large conglomerates are investing heavily in well-established battery technologies, which are supported by advanced production facilities, expansion programs, and a robust supply chain. For instance, California-based Biliti Electric recently announced a $5.6 billion investment in India for battery manufacturing. Earlier this year, General Motors secured a long-term supplier contract with LG Chem to obtain 500,000 tons of battery materials from 2026 through 2035. These developments indicate the confidence of major players in battery technology.

While each sector seeks sustainable energy solutions, performance cannot be compromised. Thus, the suitability of renewable hydrogen versus battery solutions varies by application. Batteries are ideal for passenger cars, whereas fuel cells are better suited for commercial vehicles, given their payload and driving range requirements. Batteries are also well-suited for managing small loads in solar and wind farms connected to the grid. Conversely, renewable hydrogen is advantageous in smart grids for large-scale, long-term storage. Peaker plants in the utility sector are now considering renewable hydrogen-based solutions over batteries. Heavy-duty applications, like construction equipment, also tend to favor renewable hydrogen.

The demand for clean energy is soaring across all sectors, yet the market struggles to meet it. Currently, fossil fuel use for energy needs can only be reduced by around 60%, while the renewable share is about 5 to 6% for direct electricity. This gap presents an opportunity to develop energy solutions that enhance sustainability, efficiency, and performance. Consequently, significant investments and developments are occurring worldwide to boost the clean energy supply. Government policies and funding are accelerating this development. Investments in clean, renewable hydrogen and derivatives infrastructure are expected to reach around $80 billion annually by 2030, supporting a massive 500-fold increase in electrolyzer capacity. Additionally, investments in electrification targeting EV infrastructure and EV penetration will reach $140 billion annually by 2030. These investments suggest substantial business opportunities in both production and distribution, with new players entering the market and existing players expanding through organic and inorganic collaborations.