Rystad Energy is foreseeing an acceleration in momentum within the renewable-based hydrogen sector in 2024, driven by the rapid expansion of global renewable energy capacity. The surge in the clean hydrogen industry is attributed to the maturation of policies and the commencement of early commercial-scale projects, particularly in Australia.

Artem Abramov, Head of Clean Tech Research at Rystad Energy, anticipates a substantial increase in hydrogen projects throughout 2024. This surge is expected to be fuelled by large-scale initiatives in Australia and MEA, combined with the maturation of policies in Europe and the United States. Abramov underscores the significance of the year 2024 as a period of clarity, with the completion of key feasibility studies poised to unveil novel and promising applications for hydrogen consumption. Additionally, global auctions and grants are projected to provide essential insights into various facets of the emerging clean hydrogen sector, including pricing dynamics, technological advancements, and the identification of key players in the transformative landscape.

In its outlook for 2024, Rystad anticipates a shift in focus, with a reduced number of clean hydrogen project announcements compared to previous years. The consultancy predicts a transition towards a greater emphasis on realizing projects, signifying the initiation of the learning-by-doing phase for the clean hydrogen economy.

Abramov's optimistic stance regarding the prospects of green hydrogen aligns with Rystad Energy's comprehensive assessment of the energy sector in 2024. The preceding year played a pivotal role in the energy industry's trajectory, with global renewables capacity witnessing a 50% growth, reaching an approximate total of 510 GW. Photovoltaic (PV) capacity accounted for three-quarters of this remarkable addition.

Carlos Torres Diaz, Head of Renewables and Power Research at Rystad, envisions another dynamic year for the industry in 2024. This period is expected to be characterized by significant events such as elections, challenges in the supply chain, and the maturation of nascent industries. Diaz forecasts an impressive addition of more than 510 GW of solar PV and wind capacity globally, marking another record-breaking year for the solar and wind markets. He underscores the consequential impact of the resulting new generation from these sources, exceeding 900 TWh, which is anticipated to significantly contribute to covering the growth in demand and reducing dependence on fossil-fuelled power generation.

Despite the positive outlook for the renewable energy sector, Diaz emphasizes the critical role of governments in implementing the right incentives for renewable energy projects. These incentives are deemed essential to ensuring sustained momentum and continued growth within the industry.