How much of global hydrogen production is expected to be clean by 2035?

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Clean Hydrogen Production Poised for Significant Growth by 2035

By 2035, clean hydrogen production is projected to reach 60% of the global total, a substantial increase driven by widespread government adoption of hydrogen strategies and a surge in planned projects. This outlook underscores a significant shift towards cleaner energy sources, with approximately 60 governments worldwide now having established dedicated hydrogen strategies. The global pipeline for hydrogen projects has expanded dramatically, exceeding 1,500 initiatives compared to around 200 in 2021, signaling robust momentum in the sector.
Global Investment and Project Pipeline Expansion

The development of these numerous hydrogen projects necessitates substantial financial backing, with an estimated US$680 billion in investment required by 2030. Europe is at the forefront of this investment surge, leading with 617 planned projects and a committed investment of $199 billion. This burgeoning project landscape is expected to significantly boost the demand for insurance, with projections indicating the insurance market for hydrogen project coverage could grow to over US$3 billion in premiums by 2030.
Insurance Sector's Integral Role in Hydrogen Economy

The insurance industry is positioned to play a critical role in facilitating the growth of the hydrogen economy by managing and mitigating the inherent risks associated with hydrogen. Insurers can enable investment and foster innovation through risk management advice and guidance. As hydrogen integrates further into the global economy, a substantial increase in demand for coverage across the entire supply chain, from construction and production to end-use, is anticipated.
Key Risks and Mitigation Strategies for Hydrogen Projects

Hydrogen's unique properties present a range of risks, including fire, explosion, embrittlement, leaks, and contamination, which require stringent safety measures. Effective risk management is paramount and involves careful equipment design, regular maintenance, comprehensive training programs, robust leak detection systems, and well-rehearsed emergency procedures. Product lines such as Energy, Natural Resources, and Liability are expected to be most significantly impacted by these hydrogen-related risks over the next five to ten years.

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How much of global hydrogen production is expected to be clean by 2035?

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