Hydrogen as a fuel offers great potential to decarbonize various industries and sectors like refining, iron and steel, power, and chemicals. Many companies are now focusing on reducing carbon emissions and improving their ESG (Environmental, Social, and Governance) rankings. Governments of various countries are also helping the companies go green by providing them with grants to conduct research and development.
United States (US) has rejoined the Paris Agreement and launched Energy Earthshot, which aims to reduce the cost of clean hydrogen by 80% to $1 per 1kg in 1 decade. They also aim to reduce their carbon emissions by 50-52 percent of 2005 level and reach net zero emissions by 2050.
Canada, too promises to reduce greenhouse emissions by 30 percent of 2005 levels by 2030 and plans to achieve its goal of net zero emissions by 2050 and position itself as a global leader in clean and renewable fuels.
There are 33 operational Green Hydrogen facilities across the North American region as of 2022, and 72 projects at various completion stages will come online between 2022 and 2035. The current green hydrogen capacity in the region is 691 thousand tons per annum (MTPA), and based on the projects in the pipeline, the total capacity would reach 4722 MTPA by 2035.
Source: Stratas Advisors
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