Hydrogen projects could boost $400 billion service industry, says Rystad

A wave of green and blue hydrogen projects in coming years could unlock about $400 billion worth of spending for the service industry between 2020 and 2035, research from Rystad Energy industry has revealed. 

Of the total pipeline, Rystad has projected that about 30 gigawatts (GW) of green hydrogen capacity is expected to be operational by 2035. Several blue hydrogen mega-projects are also being discussed at present. 

Of the $400 billion worth of investments, transport and infrastructure will account for $130 billion, facility construction $120 billion, equipment costs $70 billion, while engineering costs and maintenance, modifications & operations (MMO) will amount to about $25 billion each. 

‘At present, hydrogen projects, especially green hydrogen, are centred in Australia and Europe. In Asia, meanwhile, Japan and Korea are looking into importing hydrogen and developing international supply chains, especially within transportation. Hydrogen is also expected to feature in China’s forthcoming five-year energy plan, as well as in the plans presented by provincial authorities in the country,’ said Audun Martinsen, head of energy service research at Rystad Energy. 

In Europe, a group of 11 gas infrastructure companies has come up with a proposal for the development of EU hydrogen infrastructure starting with key renewable energy regions in Europe, such as the North Sea. Under the proposed infrastructure strategy, a 6800 km pipeline network will need to be built by 2030 to facilitate transportation. 

For hydrogen storage, large-scale storage locations – salt caverns, aquifers or depleted hydrocarbon fields – will be needed, involving either locations already in use for other purposes or developing new ones. Storing and retrieving hydrogen in this manner will require the drilling of a large number of wells – both injectors and producers.