• Currently, hydrogen is primarily used in non-energy applications, such as petroleum refining and chemical manufacturing, with nearly all of it being produced from fossil fuels.

Since its discovery in the 1700s, hydrogen gas has been used in various ways, including in dirigibles and airships, fertiliser production, and converting crude oil into petroleum products. It was also used in homes as town gas - a manufactured gas that is a mix of hydrogen and carbon monoxide - for lighting and heating before natural gas became widespread.

While global demand for hydrogen has experienced modest growth in the 2020s, production has reached around 100 million metric tonnes (Mt), with over 99% still derived from fossil fuels. It is primarily consumed in non-energy applications, such as the petroleum refining and chemical sectors, using fossil fuels as a feedstock and without CCUS.

China is leading in both production and consumption, accounting for nearly 30% of global demand - about twice the share of the second-largest consumer, the United States.

Today, the most common uses for hydrogen are:

1. Petroleum refining – hydrogen plays a crucial role in reducing the amount of harmful sulphur/sulfur (the IUPAC standard) oxides contained in fuels and transforming crude oil into fuels like ethane and liquid petroleum gas.  Hydrogen use in refining represents about 43% of total global hydrogen demand.

2. Ammonia production – ammonia is commonly used as a feedstock to manufacture fertilisers to enhance crop yields and quality by providing essential nutrients. Ammonia production accounts for around 33% of global hydrogen demand.

3. Methanol production – methanol serves as a base chemical material used in manufacturing of plastics, paints, fabrics and fibres, and other chemical products. It can also be used as a transport fuel instead of petrol, diesel, or fuel oil. Methanol production accounts for around 17% of the global hydrogen demand.

4. Steel production – hydrogen is used in the steel industry with initiatives exploring its potential to fully replace coal, as a fuel for furnaces and as a reducing agent to extract iron from iron ores. Notable projects include those by SSAB, LKAB, and Vattenfall in Sweden, and by Salzgitter in Germany. Steel production accounts for around 6% of global hydrogen demand.

5. Other uses – hydrogen is also used in manufacturing processes for plastics, resins, flat sheets of glass and silicon microchips, as well as a coolant for large electrical generators.

By the mid-2020s, over 1,500 hydrogen projects had been announced worldwide, covering the entire supply chain, with the majority concentrated in Europe, the US, and China.