Advancing Clean Energy Demonstration Projects

In the 2023 update to the Net Zero Roadmap, the IEA noted that while in the near term almost all emissions reductions can be delivered by technologies and measures that are already known and available, innovation will be needed through to 2050. About 35% of the CO₂ emissions reductions needed in 2050 in a scenario consistent with the energy sector reaching net zero in the same year come from technologies that are still at the pre-commercial stage today. This includes technologies in emission-intensive sectors such as heavy industry and long-distant transport. While there has been progress in recent years, more innovation is needed to demonstrate these technologies and accelerate their paths to market.

The demonstration step on the innovation journey can be particularly difficult, especially for large-scale projects, because of the significant risk and capital required to test out certain technologies. This report provides an update on clean energy demonstrations worldwide based on project-level information featured in the IEA Clean Energy Demonstration Projects Database. It draws on the latest available information on funding and development status for projects across segments including hydrogen and hydrogen-based fuels, power generation and storage, industry, transport and CO₂ management. The report also looks at examples of government support and funding instruments for demonstration projects that could potentially help accelerate the innovation journey. 

This publication has been produced with the financial assistance of the European Union as part of its funding of the Clean Energy Transitions in Emerging Economies programme (CETEE-2) within the Clean Energy Transitions Programme, the IEA’s flagship initiative to transform the world’s energy system to achieve a secure and sustainable future for all.