HYDROGEN’S ROLE IN THE ENERGY ECOSYSTEM: An End-to-End Perspective on Its Potentials and Limitations
Hydrogen: A Key Player in the Global Energy Transition
As the world moves towards decarbonization, hydrogen is often positioned as a key solution for industries struggling to reduce emissions. From heavy industry and long-distance transport to large-scale energy storage, hydrogen offers unique benefits that other low-carbon technologies may not provide. However, its role in the energy transition is not a given—it depends on economic viability, technological advancements, and a well-planned strategy for deployment.
Our latest study takes a comprehensive, end-to-end perspective on hydrogen’s role in the global energy ecosystem. It explores where hydrogen presents a clear advantage, where alternative technologies may be more efficient, and what challenges must be overcome to unlock its full potential.
What You’ll Gain from Our Paper:
A fact-based methodology evaluating hydrogen from production to utilization
An assessment of the Hydrogen Ladder – prioritizing high-impact applications
A cost and efficiency analysis of three real-world use cases
Insights into the economic, geopolitical, and technological factors shaping the market
Continue reading for a high-level summary of some of our key findings—and download the full paper for in-depth insights.
A Holistic Perspective: The Full Hydrogen Value Chain
To fully understand hydrogen’s role, we applied a Value Chain Methodology, analyzing its entire lifecycle from production to utilization. This structured approach ensures an objective assessment of its feasibility across different applications. In the following section, the Hydrogen Value Chain is quickly explained in order to provide a fundamental basis for the present study:
Production – Electrolysis, steam methane reforming (SMR), pyrolysis, and emerging production technologies.
Conversion – The transformation of hydrogen into derivatives like ammonia, methanol, or synthetic fuels for easier transport and storage.
Storage & Transport – Liquefaction, pipeline infrastructure, and shipping.
Distribution – Hydrogen refueling stations, industrial supply networks, and sector-specific delivery methods.
Utilization – Fuel cells, combustion applications, hydrogen-based fuels, and sectoral adoption trends.
By assessing each step of the value chain, we provide a fact-based perspective on where hydrogen is most effective, what infrastructure investments are required, and which pathways offer the best long-term potential.
Along the Hydrogen Value Chain: Three different Use Cases analyzed
Our study examines three real-world use cases, each offering a detailed analysis of cost structures, efficiency trade-offs, and infrastructure requirements.
1. Green Steel Production
Local hydrogen production can help steelmakers reduce supply chain risks, though it demands high CAPEX for electrolyzers and renewable energy infrastructure; imported hydrogen can sidestep some of these infrastructure costs yet raise concerns about potential transport emissions and geopolitical supply dependencies. The possibility of replacing coal in steel production is proving to be an important lever for decarbonization, even if decision-makers have to weigh up the initial investment against the long-term climatic and economic benefits.
2. Power Generation
Text: Hydrogen has the potential to play a key role in power generation, particularly as a fuel for gas-fired power plants. Different transport and storage options, such as ammonia-based carriers or direct liquefaction, affect the efficiency and cost of large-scale hydrogen deployment. While existing infrastructure can support certain routes, energy losses and economic factors need to be carefully considered. Continued innovation in hydrogen logistics will be essential to make it a viable solution for sustainable power generation.
3. Heavy-Duty Mobility Solutions
Hydrogen-based technologies in heavy transport, such as Fuel Cell Electric Trucks (FCEVs), offer advantages in terms of range and rapid refueling. While infrastructure requirements can be significant, the long-haul segment especially benefits from hydrogen where battery-electric alternatives become less competitive. Additionally, e-fuels derived from hydrogen may serve as a transitional option, but their higher cost and lower overall efficiency suggest they are less likely to become the dominant long-term solution for heavy-duty mobility.
These use cases demonstrate the economic and technical trade-offs involved, which are analyzed in full detail in the complete report.
Scaling Up: The Road to a Hydrogen Economy
For hydrogen to succeed on a global scale, massive investments and international collaboration are essential. Current global electrolyzer capacity is far below what’s needed—scaling from 1 GW today to 3,000–4,000 GW by 2050 will require an unprecedented expansion. We have identified five key factors for the future success of hydrogen in this paper:
Electrolyzer Expansion – In order to achieve large-scale, cost-effective hydrogen production, facilities must be rapidly deployed and continually optimized.
Renewable Energy Integration – By aligning electrolyzer operations with abundant solar and wind resources, hydrogen production can remain both clean and economical.
Global Partnerships – Strategic alliances between energy-intensive regions and low-cost exporters can foster stable supply chains while mitigating geopolitical risks.
Infrastructure Investments – Securing and modernizing pipelines, shipping terminals, and large-scale storage facilities is crucial for widespread hydrogen deployment.
Technology Innovation – Advancing conversion technologies and enhancing fuel cell designs will minimize energy losses and improve overall performance.
By addressing these challenges through global cooperation, regulatory support, and financial backing, hydrogen can evolve into a major pillar of the energy transition.
Conclusion: Deploying Hydrogen Where It Matters Most
Hydrogen has the potential to play a transformative role in the global energy transition—but only if deployed strategically. The key to unlocking its benefits lies in
Focusing on industries where hydrogen delivers the highest decarbonization value
Scaling infrastructure and technology responsibly to reduce costs and improve efficiency
Strengthening international cooperation to ensure a stable, diverse, and scalable supply chain.
Our study provides a comprehensive roadmap for industry leaders, policymakers, and investors, helping them navigate the complexities of the hydrogen economy with data-driven insights and strategic recommendations.
Download our full paper for in-depth insights on key trends, economic models, and strategic recommendations.
Looking for deeper insights?
Contact us for more information about our Hydrogen Value Chain Tool and its role in assessing efficiency and costs across the hydrogen supply chain.