Low carbon hydrogen and CCUS are used to decarbonize hard-to-abate processes and sectors. But their relatively high cost mean that they only reach significant scale in more rapid transition pathways, in which deeper decarbonization options are supported. Even in those types of pathways, much of that expansion occurs in the second half of the outlook.
Low carbon hydrogen production is primarily a combination of green hydrogen – made via electrolysis of water using renewable power – and blue hydrogen – made from natural gas (or coal) with the associated carbon emissions captured and stored. Given the high cost of transporting hydrogen, the global balance between green and blue hydrogen is determined by the relative costs of production in different regions, together with the relative size of the different regional markets.