The search for new trade routes for hydrogen shipping

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The search for new trade routes for hydrogen

, author of Illustration: Aïda Amer/AxiosExit Content Preview A new McKinsey report this morning looks at how hydrogen could reshape international and regional energy corridors. Why it matters: North America, Europe and East Asia will likely account for 65% of global hydrogen demand, but figuring out how to get the fuel there efficiently, reliably and cost-effectively remains a big question mark that's restricting growth. Driving the news: Nearly two-thirds of the hydrogen that will be needed to go carbon-neutral by 2050 will need to be shipped over long distances, the McKinsey report .Yes, it's McKinsey, commissioned by the Hydrogen Council, so take it with a grain of salt if you like, but hydrogen transportation bottlenecks are a real challenge. The big picture: There is no good alternative, currently.Pipelines would be the cheapest and most environmentally friendly method, but existing networks aren't a great long-term solution. Hydrogen molecules are tiny. Blending them with natural gas is safe, but incorporating anything more than 5% hydrogen starts .Meanwhile, shipping pure hydrogen by ship or truck is expensive. One effort to send hydrogen across the high seas . What they found: The solution will not be one-size-fits-all. Shipping pure hydrogen will likely be a regional business, the McKinsey report says. Longer routes will likely depend on ships, which will transport hydrogen derivatives such as ammonia or synthetic fuels.The optimal balance: 50-50 between pipelines and ships. Either way, expect to see calls for new pipelines, particularly for regional routes. (Permitting reform bill, .) What's next: Countries and the private sector will need to invest $150 billion by 2030 in transportation infrastructure to meet hydrogen demand, the report predicts.For perspective, global investment in renewable energy, EVs and other parts of the energy transition hit and soared to . What we're watching: Don't lose sight of how the hydrogen is being produced — and how that's made with renewable energy compares to the other colors of the rainbow.

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