A new analysis prepared by Boston Consulting Group (BCG) and commissioned by Third Way and Breakthrough Energy looks at six emerging clean technologies in the U.S. that will play a crucial role in the energy transition.
The report examines electric vehicles (EVs), clean steel, low-carbon hydrogen, long-duration energy storage (LDES), direct air capture (DAC), and advanced small nuclear modular reactors.
By studying the value chain of each of these technologies, the report aims to identify high-value areas where the United States can achieve a competitive advantage on the global scene.
According to BCG, the priority value chain segments within these technologies will achieve a domestic market size of $9-10 trillion in total by 2050 and produce more than $300 billion in annual export opportunities in the U.S., create millions of new jobs and improve the country’s energy security.
Relevant: Wood Mackenzie: Iron Ore And Steel Need $1.4 Trillion To Decarbonize By 2050
One of the most mature among the technologies assessed, EVs has the potential to reach a domestic market of $7-8 trillion, and a global market of $25-30 in cumulative sales. EVs can play an important role in decarbonization, with the potential to abate 5-7 gigatons per year by 2050.
Clean Steel is estimated to reach 20,000 – 25,000 million metric tons cumulatively by 2050, which means a market of $10 – 15 trillion from global steel sales and a $400-480 million domestic market. Clean steel has the potential to bring down emissions by approximately 1 gigaton by 2050.
The demand for low-carbon hydrogen is estimated at 1-2 billion tons, with a SAM (serviceable available market) value of 3-4 trillion for H2 produced and a domestic market of $300-400 billion. Hydrogen can unlock as much as 3-5 gigatons per year in abatement potential by 2050.
LDES has a potential U.S. SAM value of 3-4 trillion by 2050 and a domestic market estimated at 1-1.2 trillion by 2050. LDES’s abatement potential was not quantified because its role in decarbonization comes from supporting the integration of renewables into a net-zero energy system..
The global DAC demand is estimated at about 3 gigatons, bringing 3 to 4 trillion in value. The domestic U.S. market was calculated at 1.9 gigatons per year. DAC has the potential to decrease emissions by 5 to 7 gigatons per year by mid-century.
About 180 to 220 GW of advanced nuclear SMRs are expected to be deployed by 2050 across the globe, representing $550 – 700 billion in capital expenditures deployed through 2050. Advanced nuclear SMRs can unlock as much as 0.5 gigatons per year in abatement potential by 2050.
Read more: Are Green Hydrogen Investments The Best Bet In The Future Of Energy?
