Gauging Opportunities from the Hydrogen Economy

The Fourth Industrial Revolution will be driven by renewable energy, and in the context of energy transition, hydrogen could play a vital role.

Summary

According to the International Energy Agency (IEA), to achieve net zero emissions by 2050, an investment of USD 1.2 trillion in low-carbon hydrogen supply and use would be required. The hydrogen council projected a USD 2.5 trillion global hydrogen market by 2050. The U.S. Department of Energy projected an estimated USD 750 billion annual revenue and a cumulative 3.4 million jobs created by 2050 under the hydrogen economy. Leveraging advanced machine learning and natural language processing technology, S&P Dow Jones Indices launched the S&P Kensho Hydrogen Economy Index, which is designed to track companies involved in the hydrogen economy, including companies focused on the production, transportation, and storage of hydrogen. In this paper, we will introduce the hydrogen economy, and how we measure the opportunity from it through an indexing approach.