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Without a doubt, hydrogen will become one of the most in-demand fuel products of the future. As a result, experts have forecast significant global interest in this sector. Projections estimate a CAGR of 9.2% from 2020 to 2025. In 2020, the hydrogen market was valued at US$130 billion, but by 2025, it will have grown to US$201 billion — an increase of US$71 billion.
Specifically, in the Asia Pacific hydrogen market is currently worth US$93 billion, analysts expect a CAGR of 10%. Due to Australia’s close proximity, the country is poised to become a major player in this region and is currently developing the capabilities to provide its neighbours with high-quality hydrogen.
A global focus on climate change and a push for clean energy is the driving force behind the rise in the demand for the gas. The success of hydrogen can also be attributed to its ability to fulfil a variety of functions, including long term power storage, mobile energy generation, and the rising use of hydrogen fuel cells to power cars, trucks, ships and aircraft.
Hydrogen fuel cell technology has advanced in leaps and bounds in the last few years. Today, these modern vehicles are the leading green alternative for personal and commercial transportation.
Hydrogen cars produce no emissions and provide current, high-tech, optimal-performance options at affordable prices. The transition from fossil fuel cars to hydrogen fuel cell vehicles is well and truly underway, with a comprehensive refuelling network currently being created right here in Australia.
Electricity produced from diesel generators costs regional and remote communities AU$450 per MWh on average. Switching to hydrogen would deliver a significant saving and reduce the cost to approximately AU$100 per MWh.
Hydrogen can be used to produce syngas, a much more cost-effective alternative to natural gas. Syngas is an extremely rich form of hydrogen and economists estimate this market will grow to US$66.5 billion by 2027.
Big names in the motor vehicle industry, such as Toyota and Hyundai, are putting their money behind hydrogen fuel cell vehicles. With these multinationals and more building, a comprehensive refuelling network across Australia, uptake of hydrogen-powered cars is tipped to accelerate
Hydrogen production is forecast to inject more than AU$10 billion into the Australian economy by 2040.
Demand from countries like South Korea, China, Japan, and Singapore will see Australia exporting approximately 3.8 million tonnes of hydrogen to these partners by 2030. By 2050. Japan alone is set to import up to 10 megatonnes of hydrogen per year.
These numbers paint a clear picture: Australia must invest in hydrogen now and capitalise on its unique position to meet international demand.