eFuels: Hydrogen's next big promise?
Allan Baker, Head of Energy+ EMEA, shares his view on how electrofuels provide an alternative to conventional liquid fuels and reduce CO2 emissions in the Environmental Finance magazine published on April 4th, 2023.
Electrofuels provide an alternative to conventional liquid fuels and reduce CO2 emissions.
Hydrogen has long been recognised as a valuable tool for tackling climate change, providing an alternative solution to fossil fuels. According to the International Energy Agency (IEA), global hydrogen demand reached 94 megatons in 2021, a 5% increase on demand in 20201, bolstered by a recovery across core sectors following the Covid-19 pandemic. Even further, as a result of increased demand linked to energy transition and the replacement of fossil fuels, the global hydrogen market is forecast to reach 650 megatons by 20502, a growth of 20% per annum.
As with any new asset class, there are challenges and opportunities for both developers and financiers, and hydrogen is no exception.
- IEA, Hydrogen, Energy system overview tracking report, September 2022
- South Australia, South Australia's Hydrogen Power Plant: Powering jobs and industry, December 2022
