The Future of Hydrogen Seizing today’s opportunities Report prepared by the IEA for the G20, Japan June 2019 The Future of Hydrogen Seizing today’s opportunities Report prepared by the IEA for the G20, Japan The Future of Hydrogen Foreword Foreword This is a critical year for hydrogen. It is enjoying unprecedented momentum around the world and could finally be set on a path to fulfil its longstanding potential as a clean energy solution. To seize this opportunity, governments and companies need to be taking ambitious and real- world actions now. We are very grateful to the government of Japan for its request under its presidency of the G20 that the International Energy Agency (IEA) prepare this important and timely report. Our study provides an extensive and independent assessment of hydrogen that lays out where things stand now; the ways in which hydrogen can help to achieve a clean, secure and affordable energy future; and how we can go about realising its potential. To help to get things moving, we have identified the most promising immediate opportunities to provide a springboard for the future. As the world’s leading energy authority covering all fuels and all technologies, the IEA is ideally placed to help to shape global policy on hydrogen. The rigorous analysis in this report was conducted in close collaboration with governments, industry and academia. This study on hydrogen is part of a comprehensive approach the IEA is taking to the global energy system. Last month, we published a report on the role of nuclear power in a clean energy system. We are also holding various high-level meetings to underscore the critical elements needed for a sustainable energy future – including a ministerial conference in Dublin this month on energy efficiency and another ministerial on systems integration of renewables in Berlin in October 2019. I very much hope our report on hydrogen will inform discussions and decisions among G20 countries, as well as those among other governments and companies across the world. I hope it will help to translate hydrogen’s current momentum into real-world action that sets hydrogen firmly on the path to becoming a significant enabler of a clean, secure and affordable energy future. Beyond this report, the IEA will remain focused on hydrogen, further expanding our expertise in order to monitor progress and provide guidance on technologies, policies and market design. We will continue to work closely with governments and all other stakeholders to support your efforts to make the most out of hydrogen’s huge potential. The IEA looks forward to continuing this journey together. Dr. Fatih Birol Executive Director International Energy Agency PAGE | 3 IEA. All rights reserved. The Future of Hydrogen Acknowledgements Acknowledgements This study was prepared by a cross-agency hydrogen working group drawn from all relevant directorates and offices of the IEA. The study was designed and directed by Timur Gül (Head of the Energy Technology Policy Division) and Dave Turk (Head of the Strategic Initiatives Office). The analysis and production of the report was co-ordinated by Simon Bennett and Uwe Remme. Main contributors were Herib Blanco (transport sector), Pierpaolo Cazzola (transport sector), John Dulac (buildings sector), Hiroyuki Fukui (transport sector), Tae-Yoon Kim (oil refining), Zeynep Kurban (transmission, distribution and storage; policy), Peter Levi (industrial applications), Raimund Malischek (hydrogen supply), Christophe McGlade (transmission, distribution and storage), Kristine Petrosyan (oil refining), Cédric Philibert (hydrogen supply), Jacob Teter (transport sector) and Jabbe van Leeuwen (projects and industrial clusters). Other contributors were Thibaut Abergel, Julien Armijo, Araceli Fernandez Pales, Jacopo Tattini, Renske Schuitmaker and Tiffany Vass. Paul Lucchese (Chair of the Hydrogen Technology Collaboration Programme; Commissariat à l’énergie atomique et aux énergies alternatives (CEA) was part of the IEA team and provided expert input throughout the process. Caroline Abettan, Lisa Marie Grenier and Réka Koczka provided essential support. Edmund Hosker carried editorial responsibility. Justin French-Brooks was the copy-editor. The report benefited from valuable inputs, comments and feedback from other experts within the IEA, including Paul Simons, Mechthild Wörsdörfer, Laura Cozzi, Laszlo Varro, Paolo Frankl, Peter Fraser, Tim Gould and Julian Prime. Thanks also go to Tom Allen-Olivar, Jon Custer, Astrid Dumond, Christopher Gully, Jad Mouawad, Isabelle Nonain-Semelin, Robert Stone and Therese Walsh of the IEA Communication and Digital Office for their help in producing the report. The work could not have been achieved without the support provided by: the Japanese Ministry of Economy, Trade and Industry; the Netherlands Ministry of Economic Affairs and Climate Policy; and the New Zealand Ministry of Business, Innovation and Employment. We are particularly indebted to the expertise and guidance of the High-Level Advisory Panel for this report, chaired by Noé van Hulst (Hydrogen Envoy, Ministry of Economic Affairs & Climate Policy, Netherlands). Members include The Honourable Elisabeth Köstinger (Minister of Sustainability and Tourism, Austria), Ahmad O. Al-Khowaiter, Chief Technology Officer, Saudi Aramco), Dr. Alan Finkel (Australia’s Chief Scientist, Office of the Chief Scientist), Mikio Kizaki (Chief Professional Engineer, Toyota Motor Corporation, Japan), Dr. Rebecca Maserumule (Chief Director of Hydrogen and Energy, Department of Science and Technology, South Africa), Dr. Ajay Mathur (Director General, The Energy and Resources Institute, India), Dominique Ristori (Director General Energy, European Commission), Dr. Sunita Satyapal (Director Fuel Cell Technologies Office, US Department of Energy, United States) and Dr. Adnan Shihab-Eldin (Director General of the Kuwait Foundation for the Advancement of Sciences, Kuwait). PAGE | 4 IEA. All rights reserved. The Future of Hydrogen Acknowledgements We appreciate the contributions of speakers and participants at the IEA High-Level Workhop on Hydrogen held in February 2019. Many experts from outside the IEA provided input, commented on the underlying analytical work and reviewed the report. Their comments and suggestions were of great value. They include: Jørg Aarnes DNV Anthy Alexiades California Air Resources Board Maria Belen Amunátegui Vallejo Enagás Everett Anderson NEL Hydrogen Florian Ausfelder Dechema Fredrik Bengtsen Norwegian Ministry of Petroleum and Energy Bart Birbuyck FCH-JU Simon Blakey IHS Markit Klaus Bonhoff NOW Valérie Bouillon-Delporte Michelin Chris Bronsdon Eneus Energy Tyler Bryant Fortis BC Karl Buttiens Arcelormittal Jorgo Chatzimarkakis Hydrogen Europe Ping Chen Dalian Institute of Chemical Physics Jan Cihlar Navigant Roberto Cimino Eni Elizabeth Connelly US Department of Energy Anne-Sophie Corbeau BP Paula Coussy IFP Mark Crowther Kiwa Gastek Jostein Dahl Karlsen IEA Gas and Oil TCP Bill David University of Oxford Guillaume De Smedt Air Liquide Amandine Denis-Ryan ClimateWorks Australia Steinar Eikaas Equinor Masana Ezawa Ministry of Economy, Trade and Industry, Japan Alessandro Faldi Exxon Mobil Pierre-Etienne Franc Air Liquide Sam French Johnson Matthey Katharina Giesecke Permanent Mission of Austria to the OECD Florie Gonsolin CEFIC Jürgen Guldner BMW Manfred Hafner FEEM Ilkka Hannula VTT David Hart E4tech Bernd Heid McKinsey & Company Emile Herben Yara Caroline Hillegeer Engie Katsuhiko Hirose I2CNER reserved. PAGE | 5 rights All IEA. The Future of Hydrogen Acknowledgements Lindsay Hitchcock Natural Resources Canada Théophile Hordé Safran Group Andreas Horn BASF Brigitta Huckerstein BASF Yuki Ishimoto The Institute of Applied Energy Nikolas Iwan H2 Mobility Emmanouil Kakaras Mitsubishi Hitachi Power Systems Europe Tim Karlsson IPHE Rob Kelly ClimateWorks Australia Roland Käppner Thyssenkrupp Phillippe Kavafyan MHI Vestas Offshore Wind Vanessa Koh Ministry of Trade and Industry, Singapore Pawel Konzal Chevron Angel Landa Ugarte Iberdrola Jonathan Leaver Unitec Institute of Technology Ashish Lele Reliance Industries Chiara Marricchi Enel Takeshi Matsushita Mitsubishi Corporation International (Europe) Alicia Mignone Ministry of Foreign Affairs, Italy Jongsoo Mok Hyundai Motor Pietro Moretto Joint Research Centre – European Commission Takashi Moriya Honda R&D Peter Morris Minerals Council of Australia Hechem Nadjar Shell Motohiko Nishimura Kawasaki Heavy Industry Mikael Nordlander Vattenfall Eiji Ohira NEDO Matt Pellow EPRI Joris Proost Université catholique de Louvain Danny Pudjianto Imperial College London Carlo Raucci University Maritime Advisory Services Alison Reeve Department of the Environment and Energy, Australia Henk Reimink World Steel Association Andrew Renton Transpower Martin Robinius FZ Juelich Mark Ruth National Renewable Energy Laboratory Jacques Saint-Just H2 Plus Stanley Santos Tata Steel Europe Kazunari Sasaki Kyushu University Manfred Schuckert Daimler Virginie Schwarz French Ministry of Ecology, Energy, Sustainable Development and Spatial Planning Yoshiaki Shibata The Institute of Energy Economics, Japan Bunro Shiozawa SIP Tristan Smith University College London reserved. PAGE | 6 rights All IEA. The Future of Hydrogen Acknowledgements Markus Steinhäusler Voestalpine Hideyuki Takagi National Institute of Advanced Industrial Science and Technology Peter Taylor Leeds University Daniel Teichmann Hydrogenious Denis Thomas Hydrogenics Øystein Ulleberg IFE Fridtjof Unander Research Council Norway