Hydrogen could play a key role in a low-carbon future. Here’s how.

Five charts on hydrogen  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Belinda Yu   Editor, Atlanta The rise of clean hydrogen In the news • Greener and cleaner. The steep price of natural gas is making it costlier to produce hydrogen from fossil fuels, accelerating investment in green hydrogen, according to a new report. Since the war in Ukraine began, natural-gas prices have jumped by more than 70%, making it more economical to produce green hydrogen (also called clean hydrogen), according to Carbon Tracker, a UK-based think tank. Since February, governments and companies in 25 countries have earmarked $73 billion for green-hydrogen production. [Reuters] • Green-hydrogen goals. India, the third largest global producer of greenhouse-gas emissions, is aiming to become a major producer of green hydrogen. Experts tout green hydrogen's potential to decarbonize steel mills, petroleum refineries, and other heavy industry. But currently, India produces very little of the fuel. India's net-zero ambitions are being backed by prominent business leaders, including one who has promised to invest $70 billion to develop green hydrogen and other clean-energy technologies. [Bloomberg] In 2050, hydrogen could contribute more than 20% of annual global emissions reductions. On McKinsey.com • Clean-hydrogen demand. Hydrogen could play a key role in helping the world reach net-zero emissions by 2050, according to McKinsey senior partner Bernd Heid, partner Markus Wilthaner, and coauthors. Most hydrogen today is produced with fossil fuels. However, fulfilling hydrogen's potential as a tool for decarbonization will require a significant scale-up of clean hydrogen. Demand for clean hydrogen could grow to approximately 660 million metric tons annually by 2050, analysis by McKinsey and the Hydrogen Council finds. • Accelerating investment in hydrogen. Investment in hydrogen is ramping up, too. Around the world, more than 680 large-scale hydrogen projects have been announced, totaling $240 billion in investment. Europe accounts for 314 of the announced projects, and China accounts for roughly half of those in Asia. Hydrogen export hubs have also been announced in Africa, Latin America, the Middle East, and Oceania. See five charts that show the outsize role that hydrogen could play in helping the world reach a low-carbon future. Discover hydrogen's potential Was this forwarded to you? Sign up here. Or send us feedback—we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007