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Bedour Ibrahim

Goldman Sachs Bank predicts $5trillion needed to be invested in Green hydrogen

Sunday 29/January/2023 - 09:10 PM
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Goldman Sachs Bank commodity equity business unit leader for the EMEA region Michele DellaVigna in a recent CNBC interview expected that the market for Green hydrogen or clean H2 production could reach more than $1 trillion by 2050 and $5 trillion will need to be invested in the hydrogen supply chain to reach zero emissions as this carbon emission-free fuel has a spectrum of applications and can be used in a broad variety of different industries.

Goldman Sachs Bank predicts Green hydrogen or clean H2 is an important role in decarbonization

Goldman Sachs Bank predicts Green hydrogen or clean H2 will play an important role in the world’s efforts to decarbonize several sectors as Green hydrogen production is expected to be an important part of global decarbonization and could develop into a market with a value greater than an annual $1 trillion.

This use of Green hydrogen or clean H2 will greatly include its generation using renewable energy such as solar and wind. but if we want to go to net-zero we can’t do it just through renewable power as we need something that takes today’s role of natural gas، especially to manage seasonality and intermittency، Goldman Sachs Bank confirmed.

Green hydrogen or clean H2 is a very powerful molecule and it can be uses for heavy transport، for heating، and for heavy industry، ie is necessary to produce it without CO2 emissions and that’s why it is said it is Green hydrogen.

Different ways for producing Green hydrogen

The International Energy Agency referred to H2 as a “versatile energy carrier and there are many different ways for Green hydrogen production to take place، but renewably powered will be vital، while it can be generated in many ways، one of the cleanest uses electrolysis powered by wind، solar and other forms of renewable electricity.

Goldman Sachs Bank predicts that water molecules can be split into their oxygen and green hydrogen or clean H2 which is to grow 200-fold in next decade with the race to reduce global carbon emissions to zero، it is increasingly assumed that clean hydrogen will be the winner.

Hydrogen is the most abundant element in the universe

Hydrogen is the most abundant element in the universe and has long been viewed as part of the solution as the world moves away from fossil fuels، but the road to produce Green hydrogen and use it  has been fraught with obstacles، including the cost، but new methods of producing clean hydrogen are less expensive، and that’s a tipping point that could propel hydrogen stocks in the years to come.

Goldman Sachs Bank sates that clean H2 or Green  hydrogen has emerged as a critical pillar for any aspiring net-zero path that will help decarbonize about 15% of the global green house gas emissions in all sectors as it is versatile and generates a lot of electricity، which means it can be used for things like transporting heavy vehicles and heating furnaces used to make steel that are not easily achievable by others fuels. 

The largest use of Green hydrogen by 2050 in cars

It is expected that the largest use of Green hydrogen by 2050 to be in mobility، including in heavy trucks، airplanes and container ships with high energy storage capacity with the increasing dependency on renewable solar and wind energy.

Green hydrogen

Goldman Sachs Bank indicatd that Green hydrogen is produced by extracting the molecule through water electrolysis، where the electricity used is generated from renewable and low-carbon energy، resulting in Green hydrogen or clean H2 with zero emissions.

When renewable energy costs fall، Green hydrogen becomes a better solution for decarbonization، Goldman added، noting that it is expected to spend more than $2 trillion to purchase the hydrogen electrolysis equipment that will be required to reach net zero.