Key Results from “Green Hydrogen for Industrial Decarbonisation” (IRENA, H2 Green Steel, SYSTEMIQ)

 Key Results from “Green Hydrogen for Industrial Decarbonisation” (IRENA, H2 Green Steel, SYSTEMIQ)

🌍 1. Industry is responsible for ~30% of global CO₂ emissions, with hard-to-abate sectors like steel, ammonia, methanol, and refining contributing the most.

⚡ 2. Green hydrogen has emerged as the most scalable, clean alternative to fossil fuels in these sectors — particularly where direct electrification isn’t viable.

📉 3. Green hydrogen can reduce industrial emissions by >90% in specific applications:

Direct Reduced Iron (DRI) in steelmaking

Green ammonia for fertilizer and shipping fuel

Green methanol for fuels and chemicals

Hydrogen-based high-temperature process heat

🏗️ 4. Over 500 projects announced globally, with more than 150 focused on industrial use — yet many still face financing, offtake, and permitting barriers.

📈 5. Cost competitiveness is improving:

Green hydrogen cost is projected to drop from $5/kg to <$1.5/kg by 2050

This depends heavily on cheap renewables, electrolyzer scale-up, and policy support

🔗 6. Infrastructure gaps remain a barrier:

Massive need for hydrogen transport pipelines, port terminals, and storage

Urgency to develop industrial clusters with co-located renewable hydrogen and end users

📅 7. Critical timeline:

Projects must reach Final Investment Decision (FID) by 2026–2027 to meet 2030 climate targets.

Delay in infrastructure = delay in emissions reductions

🧩 8. Policy enablers are essential:

Clear carbon pricing or contracts for difference (CfDs)

Standardized hydrogen definitions and certification

Coordinated regional industrial hubs with anchor demand