Presentation from March 2023 CCXG Global Forum

1. Innovation and Industrial
Policies for Green Hydrogen
Antoine Dechezleprêtre, STI/PIE

2. Source: IEA (2021), Net zero by 2050
Cumulative emissions reduction by mitigation
measure in the IEA’s NZE, 2021-2050
Share of total final energy consumtion
by fuel in the IEA’s NZE, 2020-2050
Source: IEA (2021), Net zero by 2050
Hydrogen is an important part of net-zero emissions
scenarios
+ storage

3. A major role for hydrogen to decarbonise heavy
industry
Contribution of different technologies in emission reductions between 2015
and 2050 in the Netherlands
Source: OECD (2021) Policies for a climate-neutral industry: Lessons from the Netherlands.
Hydrogen
• Make existing
hydrogen production
in chemical industry
carbon-neutral
• High-temperature
industrial processes in
hard-to-abate sectors
(steel)

4. • Producing hydrogen from
electrolysis with renewable
electricity for ammonia
production is still 3 times
more expensive than from
natural gas (CH4 + H2O → CO + 3 H2)
• Even with carbon price
savings and adoption
subsidies
• Cost reductions are
needed
Even with high carbon price, green hydrogen is not
competitive with fossil-based alternatives
Green hydrogen electrolyser cumulated cash flows
for different scenarios
Source: OECD (2021).

5. • Green hydrogen production costs
can be reduced by 70% by 2030
with more efficient electrolysers
and cheaper renewable
electricity
• Cheaper electrolysers will come
from R&D, economies of scale
and learning-by-doing
➢RD&D needed
• IEA’s NZE: 12% of hydrogen
emission reductions to 2050 come
from mature techs
The drivers of cost reductions
Expected future cost reductions for green hydrogen
Source: McKinsey and Company (2021) & IRENA (2020).

6. Stagnating global innovation efforts (patents)
Source: OECD, STI Micro-data Lab
Number of annual patent filings in different hydrogen technologies, 2004-19
• Number of patents smaller
since 2009 than in 2008
• Rise in hydrogen
production patents,
decrease in fuel cells
• The pace of innovation
activity is not aligned with
new hydrogen ambitions

7. Innovation specialization in hydrogen technologies, 2004-08 and 2015-19
But some countries are specializing into hydrogen
innovation

8. Source: IEA 2021
Public RD&D spending in OECD countries
on hydrogen and fuel cells, 2004-2019
• Public RD&D halved between
2008 and 2016 (mostly in fuel
cells)
• Increase since then, driven by
hydrogen production
• Yet, hydrogen = 3.3% of
energy-related RD&D
spending across OECD, but 6%
of emissions reduction
potential
• IEA estimates tripling of public
RD&D necessary
Public RD&D up, but still lower than in 2000s

9. Ambitious planned capacity but breakthroughs
needed to shift up a gear
Source: own calculations based on IEA (2021).
Planned hydrogen capacity in main economies
• Planned capacity
deployment = 175 GW
green capacity; 40 Mt
H2/year
• Net-zero scenario
needs: 3 600 GW
electrolysis and 500 Mt
H2 by 2050
• Costs need to go down
so deployment can
accelerate
Country GW (green) Mt H2/year (green+blue)
Spain 35.2 6.1
France 34.4 6.0
United Kingdom 1.8 4.9
Australia 25.7 4.6
Netherlands 10.3 4.1
Germany 12.1 2.4
Canada 0.1 1.8
China 8.0 1.4
United States 1.5 0.7
Italy 1.1 0.2
Japan 0.01 0.003
TOTAL world 175 40.3

10. Countries’ Hydrogen Strategies
Review of strategies in Australia, Canada, France, Germany, Italy, Japan,
Korea, Netherlands, United Kingdom, United States, European Union
Main messages:
1. Ambitious deployment targets for 2030, but still far from the
necessary deployment at 2050 horizon.
2. Main policy instruments and support schemes = demonstration and
deployment support. More R&D and prototypes seem necessary.
3. Hydrogen infrastructure commitments at very early stage.
4. Hydrogen-related regulatory standards (on purity, origin, blending with
natural gas, safety, etc.) in early discussions. Multiple platforms coexist

11. Take-home messages for policy
1. Ensure greater support for R&D and demonstration. Covid recovery packages
are helping, but significant funding gaps remain
2. Reduce uncertainties through infrastructure investments and standardisation
(e.g. on guarantees of origin, hydrogen purity, equipment specifications,
blending into the gas grid)
3. Establish clear carbon price trajectories and Carbon Contracts-for-Difference to
provide investors with the right incentives.
4. Encourage the creation of an international hydrogen market
5. Further develop renewable energy

12. Thank you
Antoine.Dechezlepre@oecd.org