This global approach can better manage supply and demand for low carbon energy carriers.

Low carbon energy carriers such as clean hydrogen and ammonia are emerging as the new currency for a decarbonised industrial economy.

Clean hydrogen and ammonia can be produced using decarbonised pathways in regions which are the most economically viable and transported for use in other regions needing low carbon energy as well as industrial, chemical and agricultural feedstocks.

Since the production capabilities and utilisation needs for low carbon energy carriers are regionally determined, there is an emerging need to match supply and demand globally. This trend is also supported by a growing list of global and federal policy and public finance enablers which are supporting the development of low carbon energy carrier networks. Examples are the United States Infrastructure Investment and Jobs Act (IIJA) focus on Regional Hydrogen Hubs, and Belgium’s Hydrogen Strategy as part of its National Recovery and Resilience Plan.

Net Zero Industrial Clusters (or hubs) are developing globally as geographic areas where co-located companies, representing either a single or multiple industries, provide opportunities for scale, sharing of risk/resources, aggregation and optimisation of demand. There are areas where policy enablers are also being put into place.

A recent white paper published by the World Economic Forum focusing noted on National Policy Enablement for Industrial Decarbonisation specific to the Net Zero Industrial Cluster community noted that “Federal governments around the globe are awakening to the criticality of their role in catalysing the decarbonisation of industry with the industrial clusters approach core to global legislation.”

Of the ten nations surveyed in the paper, four were cited as investing over $1 billion into decarbonisation infrastructure such as hydrogen, with the majority of the others exploring future funding or seeding smaller amounts. The potential US hydrogen market alone could reach $180 billion by 2050.

A recent white paper published by H2Houston analysed the economics of hydrogen exports to Europe and found that the Texas Gulf Coast could be a low-cost producer for both green and blue hydrogen value chains.

In Europe, it is the goal of the Port of Antwerp/ Bruges to become a leading hydrogen import hub. Import mechanisms such as shipping and pipelines would utilise a hydrogen carrier (e.g., ammonia), converted to hydrogen at the port for green transport or materials end use applications.

As clusters form globally, there is an opportunity to establish an international network of clusters to facilitate supply-demand partnerships for low carbon energy carriers. Participants can thus “match” needs and capabilities, leveraging the support of public bridging measures as clean resources come to parity.

As you consider your next steps, we encourage other emerging individual hubs with plans for the production or use of low carbon energy carriers to join this growing global network of collaborators.

Please contact Joanna Kolomanska (joanna.kolomanska@weforum.org) for more information.