Hydrogen

Hydrogen as a source of energy

Global ambition for hydrogen as a low-carbon energy source is growing quickly as governments position themselves to meet their emissions reduction targets. This has resulted in a rapidly changing landscape of regulation, legislation, incentives and research. Despite hydrogen’s potential, there is uncertainty about whether it can compete with existing energy sources and whether low-emissions methods of producing hydrogen can be cost-effective.

Current landscape and potential growth

Globally, almost all hydrogen production is from natural gas, oil or coal, all of which produce CO₂ emissions. It is possible to capture and store the CO₂ associated with these processes (CCS), but hydrogen production with CCS makes up less than 1% of current global production. Hydrogen produced by electrolysis powered with renewable energy accounts for a fraction of a percent of production and natural hydrogen accounts for even less.

Demand for hydrogen is currently driven by oil refining and the production of ammonia, methanol and direct reduced iron. Other applications account for less than 1% of global hydrogen demand. However, hydrogen could be used for many other applications such as transportation, heating, power generation and other industrial processes.

The desire to reduce emissions, the potential to increase hydrogen’s use and to grow the production of low-emissions hydrogen is driving the ambition for a hydrogen economy.

Our expertise

RISC’s multidisciplinary team of experts has over 10 years of experience advising on energy transition projects. We have provided advice on hydrogen to a range of clients from publicly listed companies
to government organisations and regulators. We have advised on hydrogen strategy, policies, fiscal terms, costs and technical challenges. Recently, our work was acknowledged at COP 28 in the United Arab Emirates.

RISC’s deep knowledge of the energy industry has been essential in enabling us to complete successful hydrogen assignments for our clients. Understanding the changing energy landscape gives RISC the ability to help our clients navigate the evolving hydrogen industry.