Hydrogen as an Important Element in the Commodity Market

By Shubhendra Anand , 09 October, 2024

Hydrogen is an important source in the clean energy transition. Experts claim that hydrogen plays a pivotal role in achieving net zero emissions. Clean Energy Transition's main motto is to reduce environmental carbon emissions. Therefore, the energy market targets the production of green hydrogen, excavating rare earth minerals, boosting electric vehicle sales, electricity generated from renewables, and many more. Hence, hydrogen is the topic of discussion in the energy market nowadays. Recent surveys in 2024 reveal that hydrogen will trade in the commodity markets in the coming years.

According to researchers, hydrogen is a crucial element in the clean energy industry. It contains several functions that can boost the clean energy transformation process. Hydrogen is considered a zero-emissions energy element. Hence, it can help to enhance net zero emissions in the environment. Another reason for opting for hydrogen is that it can be stored for extended periods. Thus, it turns out that it is an important renewable source for solar and wind energies. Hydrogen can help boost the sales of electric vehicles by acting as a power fuel. Thus, consumer demand for EVs will rise if enough hydrogen is produced and sold as a commodity in the energy market. It will act as a better alternative to fossil fuels for conventional vehicles. Another critical function of hydrogen is that it can act as a great grid-balancing element. Hydrogen can store renewable energy in larger quantities to generate electricity when demand rises. Hence, there are many reasons for choosing hydrogen as an element in the commodity market in 2024.

Experts claim that there are initiatives in Europe that plan to set up a commodity market. It will convert energies like natural gas, electricity, and other vital energy sources. Therefore, research is being done to develop new hydrogen markets with less risk. It also considers the proper regulatory rules for the firm. Researchers keep in mind that hydrogen provides immense results in the clean energy sector. Hence, it is a vital element for trade in the commodity market.

                              Hydrogen's outlook in the global energy outlook for 2024