BAKU, Azerbaijan, April 9. Owning a combination of factors necessary for the development of the green hydrogen industry, Azerbaijan is set to become a regional leader and a reliable supplier to the EU, Vladimir Rogov, Managing Director and Partner of the Boston Consulting Group (BCG), told TurkicWorld.
He pointed out that support of the green energy projects under the REPowerEU plan and the growing interest of investors create favorable conditions for the rapid development of the renewable energy sector (RES) and the hydrogen sector of the country's economy.
"To reach net zero by 2050, low-carbon hydrogen is a novel option to decarbonize industries with hard-to-abate emissions, such as basic chemicals, aviation, steel production, shipping, and long-haul road transportation. While gray hydrogen is generated from natural gas or methane, low-carbon hydrogen is produced through electrolysis powered by renewable energy sources such as wind or solar, or fossil fuels paired with carbon capture and storage," added Rogov.
The expert noted that in 2021, demand for hydrogen was around 94 million tons, most of it in the form of gray hydrogen, which is produced from methane or natural gas and therefore isn’t environmentally friendly.
"But by 2050, demand for low-carbon hydrogen will approach 350 million tons per annum (mtpa) under a 2°C global warming scenario or 530 mtpa under a 1.5°C scenario. Governments and companies will have to invest approximately $6 trillion to $12 trillion between 2025 and 2050 to produce and transport enough low-carbon hydrogen to meet demand, according to BCG’s calculations. Although investment opportunities will extend across the hydrogen value chain—from feedstock development and generation to hydrogen transportation and storage—$300 billion to $700 billion of that amount must be deployed soon, from 2025 to 2030," said Rogov.
Follow the author on Twitter: @Lyaman_Zeyn