The International Association Cedigaz has just released its hydrogen report: “The United States of America enters the global clean hydrogen race”, which assesses market developments, policies and prospects of the hydrogen industry in the United States. The report also provides data on US clean hydrogen production projects.
Although late in adopting clean hydrogen and lagging behind other major nations in defining a national strategy, the United States has prepared the groundwork for several years and is well positioned to become a global leader in clean hydrogen. The US Government is determined to lead the race in the global clean hydrogen market.
In 2021, global gas demand surged 4.5% and recorded the largest volumetric growth on record, with an annual gain of 173 bcm that more than offset the 2020 2% decline. This strong rebound took place in the context of a faster than expected economic recovery following the lifting of lockdowns and a strong growth of global energy demand. Both economic, geopolitical and weather factors contributed to the growing and unprecedented tightness of the global gas market. They led to an explosion of Asian and European spot prices to historic highs.
A once-in-a lifetime growth over this decade
Despite the pandemic and its impact on supply chains and fuel demand in the transportation sector, the RNG sector has been resilient. Global RNG production was up 20% in 2020 to 5 billion cubic metres (bcm). It has more than doubled since 2015. There were 1,161 biogas upgrading facilities operating in the world at the end of 2020, with a production capacity of 800,000 Nm3/h (or 6.7 bcm/y), ensuring healthy growth going forward. The market remains dominated by Europe, but the United States, which became the world’s leading producer in 2019, ahead of Germany, continues to register significant growth. In other regions, biomethane production is still limited but is taking off in Brazil, Canada, China and India.