Governments must ‘synchronise’ supply and demand goals – IEA

Imbalances between supply and demand ambitions risk derailing production growth, IEA warns

The IEA has urged governments to address a growing imbalance between projected supply and demand in the hydrogen market that threatens to hamper the growth of production and the industry’s supply chains. Globally, government targets for low-emission hydrogen production call for 27–35mt/yr by 2030, but targets for creating demand account for just 14mt/yr, only half of which is focused on existing hydrogen uses, the IEA said in its Global Hydrogen Review 2023. That imbalance could hamper the progression of announced production projects to FID and impede the development of supply chains, the IEA said. “To rectify this situation, governments must clarify their ambitions with regards to demand,”