BP confirmed today that it picked up over 40% stake in the Asian Renewable Energy Hub project to produce and export green hydrogen in Australia. In addition, TotalEnergies and Adani announced yesterday an investment of $5 billion into the development of hydrogen and derivatives business in India.
“The tide is turning on hydrogen investments in Asia. After a 100-fold jump in low carbon hydrogen project announcements over the past three years, major energy players now seem willing to raise the game on green investments,” said Wood Mackenzie vice president Prakash Sharma, commenting on the announcements.
“The investments committed by BP and TotalEnergies confirm the industry’s confidence in hydrogen technology. Australia is home to nearly a quarter of all the announced projects and more capital will flow into low carbon hydrogen projects in the future if they are backed by a firm off-taker,” said Sharma.
“Hydrogen is a wonder-fuel and can decarbonise all sectors of economy. In Wood Mackenzie’s 1.5-degree scenario analysis, low carbon hydrogen demand reaches over 600 Mt in 2050 from under 1 Mt today. We estimate $3.5 trillion is needed to build renewable electricity supply and electrolyser capacity by 2050. The demand growth will be mainly driven by China, India, Japan, Korea, Europe, and the US,” he said.
“Hydrogen also offers significant export opportunities to countries blessed with renewable energy resources and we expect Australia, Middle East and North America to emerge as dominant players in the traded market for hydrogen and ammonia longer term,” added Sharma.
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