Search Climate Insights Directory

The report categorizes hydrogen applications into 'high-value' (primarily chemical feedstocks) and 'low-value' (primarily energy provision), arguing that the latter are often outcompeted by direct electrification. It warns that without strict guardrails on production, electrolytic hydrogen could increase net greenhouse gas emissions. The author recommends focusing infrastructure on tight industrial clusters and utilizing demand-side policies like advance market commitments and contracts for difference to scale high-value uses while minimizing risks in low-value sectors.