According to the Hydrogen Council, in a net zero world demand for clean hydrogen could increase from 90 million metric tonnes today to 660 million metric tonnes in 2050, making up 22 % of the final energy demand globally.
In the UK alone it’s estimated that the hydrogen sector could support approximately 30,000 direct jobs by 2030 and is also anticipated to create 72,557 annual construction jobs over the next five years.
With the hydrogen sector witnessing significant transformations, establishing a new era in the energy landscape. These changes are set to impact employment across various industries, repurposing existing skills and generating new job opportunities. We wanted to share some of the latest trends in the hydrogen sector and their implications for employment.
Skill Transfer and Development
As hydrogen integrates into the energy system, it will reuse existing energy industry skills and services across the entire supply chain. This transition leverages the expertise accumulated in the oil and gas sector, particularly for blue hydrogen, which involves natural gas reforming.
Additionally, skills in offshore wind, ports, logistics, pipeline design, transmission, and distribution infrastructure will be crucial for the deployment of hydrogen technologies. This crossover means that professionals from these sectors can find new opportunities in the growing hydrogen economy, ensuring their specialist skills remain relevant and in demand.
Job Creation in New Industries
Hydrogen projects are set to create substantial employment opportunities, especially in production, storage, transport, and end-use sectors. The industry will encompass a variety of roles, from engineering and safety assessments to logistics and infrastructure management. As the sector expands, it will demand a workforce skilled in these areas, leading to job creation across multiple disciplines. This growth not only offers new employment avenues but also contributes to economic development in regions investing in hydrogen infrastructure.
Safety Training and Standards
Safety remains a paramount concern in the hydrogen sector, requiring comprehensive training and strict adherence to safety standards. The implementation of new safety guidelines and standards will be essential for large-scale hydrogen production, storage, and transport. This focus on safety will create demand for specialised training programs, ensuring that employees are well-versed in handling hydrogen safely. The establishment of rigorous safety protocols will further solidify hydrogen's role as a safe and reliable energy source.
Growth and Investment
Global investment in hydrogen as an energy carrier is projected to grow dramatically, in 2021 in the US alone investment was 12 billion it’s now projected to be 440 billion by 2050. This substantial increase in investment highlights the sector's potential and the confidence of stakeholders in its future. Green hydrogen is expected to become the cheapest form of production in most regions by 2050, driven by advancements in technology and economies of scale. This influx of capital will spur further development and innovation, creating additional employment opportunities and fostering economic growth.
Policy and Regulatory Support
The growth of the hydrogen sector necessitates robust policies and regulatory frameworks to scale production and use effectively. Addressing safety, financial, and infrastructural barriers will be crucial. Key policy areas include carbon pricing, demand-side measures, and support for Carbon Capture and Storage (CCS) and renewable energy capacity. Stronger policies will provide a stable environment for investment and development, facilitating the sector's expansion and creating a conducive atmosphere for job creation.
Technological Advancements
Technological advancements are central to reducing costs and improving the efficiency of hydrogen production. Cost reductions in grid-based electrolysis and advancements in green hydrogen production are anticipated, with costs projected to average around USD 1.5/kg by 2050. The development of hydrogen derivatives like ammonia and methanol is also crucial for sectors such as shipping and aviation. These technological strides will drive the sector forward, creating specialist job opportunities in research, development, and implementation of new technologies.
Infrastructure Development
Significant investment in hydrogen pipelines and ammonia terminals is expected, with more than 50% of hydrogen pipelines likely to be repurposed from natural gas pipelines. Developing infrastructure for hydrogen transport and storage, including pipelines and shipping methods, is key for the hydrogen value chain. This infrastructure development will not only support the growth of the hydrogen sector but also generate jobs in construction, engineering, and maintenance, providing a substantial boost to employment.
Market Dynamics
The demand for hydrogen is expected to be driven by hard-to-abate sectors such as high-temperature industrial processes, heavy transport, and energy storage. Developing a robust hydrogen market requires coordinated efforts across production, distribution, and end-use applications. As the market evolves, it will create diverse employment opportunities, from manufacturing and logistics to technical services and market analysis. This dynamic market environment will foster innovation and job creation, contributing to the overall growth of the economy.
These highlights underscore the significant employment opportunities and the critical role of policy, investment, and technology in the growth of the hydrogen sector. As the sector evolves, it will not only transform the energy landscape but also drive economic development through job creation and skill development.
