G20 energy ministers in Japan discuss global renewable energy and environmental reforms
Energy ministers from G20 nations meet in Kuruizawa, Japan, today to discuss environmental issues, with a particular focus on transitioning to clean energy.
The International Energy Agency’s study on hydrogen will likely top the meeting’s agenda. Major industries, such as steel manufacturing, agriculture, transport and electricity, could potentially decarbonise by adapting to hydrogen. Proponents even claim hydrogen is capable of replacing the fuel cars, trains, buses, forklift and cranes use. They forecast that within 30 years, global demand for hydrogen will reach 530 million tonnes and be worth $2.5 trillion.
On the other hand, while renewable energy is becoming more competitive as demand increases and costs fall, renewable hydrogen powered electricity is still two to three times costlier than natural gas. Also, the Hydrogen Council’s forecast that hydrogen will account for 18% of energy’s market future share and create 30 million jobs is dependent on a $280 billion investment over the next 10 years.
As renewable hydrogen is not yet competitive enough to be driven by the private sector, do not expect it to challenge the oil economy in the medium-term. However, expect today’s meeting to make a stronger commitment to boosting a renewable hydrogen driven economy.
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