Governments need to move faster and more decisively on policy measures to enable clean, low-carbon hydrogen – which can be produced using nuclear reactors – to fulfil its potential to help the world reach net zero emissions while supporting energy security, the International Energy Agency says in a report.

Global production of low-carbon hydrogen is minimal, its cost is not yet competitive, and its use in promising sectors such as industry and transport remains limited – but there are encouraging signs that it is on the cusp of significant cost declines and widespread global growth, according the IEA’s Global Hydrogen Review 2021.

The report says governments need to develop strategies and roadmaps on the role of hydrogen in energy systems. It also calls for incentives for using low-carbon hydrogen to displace unabated fossil fuels and investment in production, infrastructure and factories.