2 September 2020
Green hydrogen has recently fuelled optimism for its potential to decarbonise trickier sectors of the economy, such as heavy industry and transport. Critics would, however, be quick to point out that this is not the first time that hydrogen has been promoted as an alternative fuel – the term ‘hydrogen economy’ was coined in 1970 and has delivered both promise and disappointment over the decades since.
In this opinion piece, Travis Elsum, Group Internal Model Controller at L&G, examines the opportunities and challenges for green hydrogen. He argues that while green hydrogen is not a silver bullet and faces significant challenges, the Paris Agreement and the need to transition to net-zero global emissions before 2050 have fundamentally changed the equation. Green hydrogen is considered to be the most efficient solution for decarbonising difficult areas accounting for up to 20% of global emissions. For that reason alone, green hydrogen is sufficiently credible to merit substantial support from governments to help it to reach scale.