Macroeconomic Issues
A strategic lever for industry and energy sovereignty
Hydrogen is often presented as a strategic lever for the decarbonization of industry, serving as an energy carrier or input in various applications, particularly for energy storage and industrial processes that are difficult to electrify. However, its role remains to be consolidated, as its development requires massive investments in production, transportation, and storage infrastructure, estimated at several hundred billion dollars globally.
These investments are essential for decarbonizing heavy industries (such as steel and chemicals) and diversifying energy sources, but the competitiveness of green hydrogen—produced from renewable energy—depends heavily on the cost of that energy, which still varies by region.
The rise of hydrogen could reshape the geopolitics of energy, with the emergence of new producer countries (the Middle East, North Africa) possessing strong solar and wind potential. However, this momentum remains contingent on proactive public policies capable of bridging the cost gap with fossil fuels.
While the hydrogen sector offers prospects for economic growth and the creation of skilled jobs, it remains vulnerable to the risk of a slowdown in the absence of sufficient funding, industrial coordination, and technological maturity.
Technological Challenges
Technical challenges to be overcome for large-scale adoption
Hydrogen’s contribution to decarbonization hinges on several technological challenges:
- low-carbon production, particularly via electrolysis: improving the efficiency, reliability, and competitiveness of electrolysers is a research priority,
- storage and transportation: due to its low volumetric energy density, hydrogen requires specific infrastructure (liquefaction, high-pressure compression), which is costly and energy intensive,
- adapting end-use technologies, which is crucial: this includes developing high-performance fuel cells for heavy-duty transportation and compatible burners for industrial processes,
- scaling up these solutions and ensuring their interoperability are essential for hydrogen to fully play its role in the energy transition.