H2Tech Market Data 2023 - 12

also new infrastructure to deliver this product to demand
centers. According to Wood Mackenzie, the global H2
ket will require at least $600 B in investments by 2050
mar447
35
39
Canada
117
Western
Europe
U.S.
36
Central and South America
Africa
Asia-Pacific
45
Eastern Europe,
Russia, CIS
40
Middle East
200
to meet H2 demand. According to the company, global H2
demand will increase from less than 1 MMtpy in 2022 to
more than 220 MMtpy by 2050 (FIG. 2).
H2 project announcements have continued to increase
over the past year. According to Gulf Energy Information's
Global Energy Infrastructure (GEI) database, active H2
projects have increased to more than 950 globally, with
Western Europe by far the leader in active H2
investments
(FIG. 3). In total, these projects represent a total capital
expenditure of more than $800 B. When analyzed by
production type, nearly 75% of active H2
projects are
green, followed by blue (FIG. 4), with most projects in the
planning/proposed stage (FIG. 5).
With the large percentage of green H2
capacity builds,
significant investments must be made in renewable
power. Substantial capital has been allocated for renewable
power generation for more than 15 yr. According to
the International Renewable Energy Agency (IRENA),
renewable energy investments have increased from $70 B
in 2005 to approximately $320 B in 2020-the agency's
report details that more than $4.4 T/yr in investments
are needed to 2050 to adhere to the 1.5°C pathway
goal set out in the Paris Agreement. These investments
include energy transition technologies (e.g., electrification,
power grids, energy efficiency, CCS/CCUS) and
infrastructure (FIG. 6).
As detailed in the individual regional reports of this
FIG. 3. Total active H2
projects by region.
2% Other
3% Gray
22% Blue
73% Green
7% Under construction
23% Feasibility study
1% Pre-FEED
63% Planning/proposed
6% FEED
FIG. 4. Active project market share by H2
type.
FIG. 5. Active project market share by activity level.
analysis, hundreds of billions of dollars will be invested by
the end of the decade to significantly boost wind and solar
power generation capacity to fuel the massive amount of
electrolyzers that will be put into operation over the same
timeframe-the electrolyzer market is forecast to witness
an 8,000% increase, reaching more than 100 GW by 2031.
In turn, these electrolyzers will produce green H2
to be
used in various sectors of the global economy.
In addition, many of the projects discussed within
this analysis include some type of carbon capture element-i.e.,
carbon capture and storage (CCS) or carbon
capture, utilization and storage (CCUS). These technologies
will be instrumental in mitigating CO2
emissions
into the atmosphere and aid countries and companies
to reach net-zero emissions goals. According to Rystad
Energy, 550 MMtpy of announced CCUS projects will start
operations by 2030, reaching a market value of more than
$50 B/yr. Most of these projects are in Europe.
12
MARKET DATA 2023 | H2-Tech.com
H2 INITIATIVES AND INVESTMENTS GLOBALLY
http://www.H2-Tech.com
H2Tech Market Data 2023

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