Hydrogen will play a major role in the global energy markets over the coming decades. Taking away a large chunk of oil demand, according to Bank of America’s head of global thematic research.
“We believe that hydrogen is going to take 25% of all oil demand by 2050,” he went on to state, adding that oil was “facing headwinds left and right. Yes, we’ll still need it, yes, it’s still going to be around, but the market share of oil is going to plummet.”
Hopes for hydrogen
Hydrogen is another area starting to gain momentum. The EU has laid out plans to install 40 gigawatts of renewable hydrogen electrolyzers and produce as much as 10 million metric tons of renewable hydrogen by the year 2030.
Hydrogen can be produced in a number of ways. One includes using electrolysis, with an electric current splitting water into oxygen and hydrogen. If the electricity used in the process comes from a renewable source such as wind then it’s termed “green” or “renewable” hydrogen.
In the last few years, governments and companies around the world have announced goals to reduce their carbon footprint and move away from fossil fuels. Both the UK and EU are targeting net zero greenhouse gas emissions by 2050.
In a sign of how things may be starting to change, a number of energy majors — who, it should be noted, remain big players in oil and gas — are now ramping up investment in renewables such as solar and wind.