Hydrogen generation could develop into a market worth over $1tn a year: Goldman Sachs

Hydrogen has a crucial role to play in achieving net-zero, and could emerge as a market worth over $1 trillion a year, according to Goldman Sachs. 

Michele DellaVigna, Goldman Sachs’ commodity equity business unit leader for the Europe, Middle East, and Africa region told CNBC that relying just on renewable power sources is not sufficient enough to reach net-zero. 

According to DellaVigna, an energy source should replace today’s role of natural gas, and it is hydrogen. 

“It’s a very powerful molecule. We can use it for heavy transport, we can use it for heating, and we can use it for heavy industry,” said DellaVigna. 

DellaVigna also talked about the vitality of generating clean hydrogen and made it clear that it should be produced without CO2 emissions. 

He pointed out that the production of blue hydrogen and green hydrogen could help in decarbonization, ultimately leading to net-zero. During the process of generating these clean forms of hydrogen, CO2 emissions will be processed and captured. 

“Whether we do it with electrolysis or we do it with carbon capture, we need to generate hydrogen in a clean way,” added DellaVigna.