The search for new trade routes for hydrogen

October 5, 2022

A new McKinsey report this morning looks at how hydrogen could reshape international and regional energy corridors.

Why it matters: North America, Europe and East Asia will likely account for 65% of global hydrogen demand, but figuring out how to get the fuel there efficiently, reliably and cost-effectively remains a big question mark that’s restricting growth.

Driving the news: Nearly two-thirds of the hydrogen that will be needed to go carbon-neutral by 2050 will need to be shipped over long distances, the McKinsey report says.

(…) What’s next: Countries and the private sector will need to invest $150 billion by 2030 in transportation infrastructure to meet hydrogen demand, the report predicts.

For perspective, global investment in renewable energy, EVs and other parts of the energy transition hit $500 billion in 2020 and soared to $755 billion the next year.

Read more here.

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