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Charting the Development of a Global Market for Low-Carbon Hydrogen

Max Schönfisch ()
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Max Schönfisch: Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI),

No 2022-3, EWI Working Papers from Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)

Abstract: This paper analyses the impact of supply technology choices and costs on structures and prices on the emerging low-carbon hydrogen market using a novel, integrated natural gas and hydrogen market model. It shows that natural gas-based low-carbon hydrogen production pathways predominate in technology-neutral scenarios in 2050. In scenarios where hydrogen production is gas-based, hydrogen is produced close to the point of consumption. Natural gas prices determine local hydrogen prices. In scenarios characterised by high shares of RES-based low-carbon hydrogen production, long-distance, cross-border trade in pure hydrogen becomes an economically viable proposition due to the heterogeneous distribution of low-cost RES potentials and significant hydrogen price spreads between countries with high hydrogen demand but poor RES potentials, and countries that are well endowed with cost-competitive RES. Trade is conducted almost exclusively via pipeline. The analysis finds the most significant potential for cross-border trade in and around Europe. It suggests that it would be economical for Europe to import substantial quantities of low-carbon hydrogen from North Africa.

Keywords: Hydrogen (search for similar items in EconPapers)
JEL-codes: Q40 Q42 Q49 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2022-03-23
New Economics Papers: this item is included in nep-ene, nep-env, nep-int and nep-reg
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