Trading hydrogen: How the market for hydrogen is likely to evolve based on lessons learnt from natural gas
Trading hydrogen: How the market for hydrogen is likely to evolve based on lessons learnt from natural gas

Author: Alex Jacob, Analyst, Baringa Partners LLP

The expansion of hydrogen as a transitional fuel points to an important development: the early-stage growth of a hydrogen market. While demand is expected to grow to 500-680 million MT by 2050 (IEA), the supply side of hydrogen uptake is contingent on three main factors: production, storage and distribution. Production technologies (green and blue hydrogen) are increasingly feasible due to falling renewable prices and improved operational efficiency. However, this increase in the commercial viability of hydrogen production is offset by difficulties in storage and transportation: the cost of retrofitting carriers is prohibitively high. The hydrogen market is at tipping point.