Hydrogen will offer an economic and social benefit in the future. But how exactly? Here’s how hydrogen energy will help us from an economic perspective.
The Rise of Hydrogen Consumption:
The world is consuming more hydrogen year by year. According to Hydrogen Council, the annual hydrogen energy consumption in 2050 is estimated to be 78 EJ.
(1 EJ is the total amount of energy required on Earth. It is equivalent to roughly 170 million barrels of oil.)
Vision for Hydrogen 2050 – Consumption Rate
Producing hydrogen would meet 18% of the total final energy demand in 2050, according to the McKinsey report. So far, hydrogen is used for industrial processes, for which electrification is not an efficient option.
Vision for Hydrogen 2050 – Annual CO2 Abatement
Increasing usage of hydrogen energy would reduce annual CO2 emissions by roughly 6 Gt compared to today’s technologies.
Vision for Hydrogen 2050 – Annual Sales of Hydrogen and Equipment
The world invests along the hydrogen value chain, including transportation, industry, and energy exploration, production, and distribution. We envision a market for hydrogen and hydrogen technologies with revenues of more than $2.5 trillion per year.
Vision for Hydrogen 2050 – Jobs Created
By 2050, we envision a market for hydrogen and hydrogen technologies with jobs for more than 30 million people globally, including research and developments, infrastructure, and distribution sectors.
Vision for Hydrogen 2050 South Korea
McKinsey envisions the South Korean market for hydrogen and hydrogen technologies with revenues of approximately 70 trillion KRW by 2050, creating 600,000 jobs(accumulated).
Hydrogen as Strategic Reserve and Buffer
The global energy system today has a buffer capacity to guarantee national and global energy security. This buffer absorbs supply chain shocks, provides strategic reserves at a country level, and helps countries manage supply and demand imbalances.