Global Hydrogen Demand Rises 2% in 2024
Global Hydrogen Demand and the Role of Fossil Fuels The global demand for hydrogen reached 100 million tonnes in 2024, marking a 2% increase from the previous year. This growth aligns with the broader trend of rising energy demand worldwide. However, the majority of this hydrogen was still produced using fossil fuels, without adequate measures to capture the associated emissions. According to the International Energy Agency (IEA), the continued reliance on fossil fuels for hydrogen production is driven by cost considerations. In many regions, producing hydrogen from natural gas remains the most economical option. This affordability has been further reinforced by recent declines in natural gas prices. At the same time, the cost of electrolysers—key components in producing low-emissions hydrogen—has increased due to inflation and slower-than-expected technological deployment. Despite these challenges, the IEA highlights that the cost gap between fossil fuel-based and low-emissions hyd...