BP: Low-carbon hydrogen demand to rise, steel output to account 40% of hydrogen demand by 2050

Tuesday, 31 January 2023 17:07:55 (GMT+3)   |   Istanbul

Demand for low-carbon hydrogen, which plays a critical role in helping the energy system to decarbonize, is expected increase by 10 times between 2030 and 2050 reaching an annual 300 million mt and 460 million mt, respectively, according to the annual Energy Outlook report of UK-based oil and gas company BP.

The report noted that low-carbon hydrogen growth is forecast to be relatively slow this decade, reflecting both the long lead times to establish low-carbon hydrogen projects and the need for considerable policy support to incentivize hydrogen use. However, the pace of growth will accelerate in the 2030s and 2040s as falling costs of production and tightening carbon emissions reduction policies allow low-carbon hydrogen to compete against fuels. 

Meanwhile, the use of low-carbon hydrogen in iron and steel production is expected to account for around 40 percent of total industrial hydrogen demand by 2050, where it acts as an alternative to coal and natural gas as both a reducing agent and a source of energy. Along with the efforts of the governments towards decarbonization, steel producers have already started investing in green hydrogen within the scope of their carbon emission reduction targets, as SteelOrbis reported.

Similar articles

Turkey’s Kroman Çelik plans to raise port handling capacity

20 Mar | Steel News

Tata Steel UK to cut emissions by replacing induction furnaces at Corby plant

14 Mar | Steel News

Blastr Green Steel to invest over €1 billion to build pellet plant in Norway

10 Mar | Steel News

Tata Steel UK upgrades two painting lines at Shotton plant, one line commissioned

17 Feb | Steel News

British Steel to commission new billet caster this spring

13 Jan | Steel News

Turkey’s Tosyalı gets environmental approval for modernization and capacity increase project

10 Jan | Steel News

Turkey’s Yıldız Demir Çelik invests in new meltshop and rolling mill

29 Dec | Steel News

Turkey’s IDC begins machinery and equipment assembly for melting shop investment

28 Dec | Steel News

Turkey’s Sardoğan gets approval for seamless hot drawn pipe capacity increase project

23 Dec | Steel News

OECD: Global excess capacity expected to expand with new investments

20 Dec | Steel News