NEWS STORIES | SEPTEMBER 11 2023
Weekly Perspectives: Navigating the Green Hydrogen Revolution: Addressing Platinum Consumption for Sustainability
This blog post dives into the in-depth analysis conducted by the commodity analysts at Bank of America. Their report underscores the rapid growth of the hydrogen economy—surging at 3.5 times the initial projections in the past year alone. This progress, while impressive, shines a light on the gap that still remains in achieving Net Zero targets.
Of particular interest are the various technologies competing in the realm of “Green Hydrogen.” The report delves into the ascendancy of platinum-intensive proton exchange membrane electrolysers (PEMs), which account for a significant 32% of installed electrolysis projects globally and a staggering 74% of projects slated for commission by 2030. The implications of this growth on platinum demand within the coming decade are substantial.
These insights are bolstered by the analysts’ forecast: under the premise of PEMs securing a 70% market share by 2030, annual platinum demand from green hydrogen production could reach a notable 778,000 ounces. In a more ambitious Net Zero scenario, where accelerated electrolysis investment prevails, this demand could swell to an impressive 2.4 million ounces—an astonishing 29% of supply.
Moreover, Bank of America’s analysts shed light on the potential for demand from the hydrogen sector to outpace platinum supply, leading to projected deficits in the platinum market as early as 2030. This scenario might trigger a tightening of the market, spurred by heightened investments in the hydrogen economy and the adoption of PEM electrolysers and fuel cell electric vehicles (FCEVs).
Recommendations by IGH2A for a Sustainable Path Forward:
To address the challenges posed by platinum consumption, IGH2A proposes a series of informed discussions and potential actions:
Research and Education: Initiating webinars, workshops, and awareness campaigns to educate stakeholders about the implications of platinum consumption and the potential for alternative technologies.
Collaboration: Encouraging collaboration with experts, institutions, and green technology companies to collectively explore solutions that reduce platinum dependence.
Advocacy and Policy: Advocating for policies that promote research into platinum-saving technologies and responsible mining practices.
Innovation and Technology: Providing research grants, hosting innovation forums, and supporting breakthrough technologies that decrease platinum demand.
Consumer Awareness: Engaging the public through informative materials and social media campaigns, empowering individuals to make sustainable choices.
Business Engagement: Partnering with businesses to ensure responsible supply chain practices and corporate sustainability initiatives in the green hydrogen sector.
Green Hydrogen Development: Investing in pilot projects and research efforts that focus on platinum-efficient green hydrogen production methods.
Paving the Way for a Sustainable Hydrogen Future
As the world races towards a sustainable energy landscape, the issue of platinum consumption in the green hydrogen sector serves as a vital checkpoint. By raising awareness, fostering collaboration, and advocating for responsible practices, we can collectively shape a path toward a greener and more sustainable hydrogen future. Through informed discussions and purposeful actions, we have the power to turn challenges into opportunities, ensuring that our journey towards a clean energy transition is both impactful and enduring.