Hydrogen, with its versatile applications and potential for future expansion, has emerged as a promising subset of the clean energy sector. As the world seeks sustainable alternatives, the global market for hydrogen, valued at approximately US$185 billion, is poised for significant growth. In this article, we will delve into the various aspects of the hydrogen market and explore its potential for clean energy transitions.
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Market Analysis in Brief
Hydrogen, being produced on a commercial basis today, has fostered the development of a thriving global industry that caters to industrial users. However, despite its current utilization accounting for less than 5% of the world's energy, hydrogen's full potential for clean energy transitions remains largely untapped. With aggressive government programs supporting its adoption, hydrogen holds the promise of contributing up to a quarter of the world's energy consumption by 2050. Moreover, key hydrogen technologies, such as direct reduced iron (DRI) for steel manufacturing, the use of ammonia in shipping vessels, and the application of synthetic fuels in aviation, are still in the early stages of commercial availability. The future could witness trucks, airplanes, and ships being powered by hydrogen. Additionally, hydrogen can be employed in diverse areas, including fertilizer production, home heating, power generation, electricity network stability, and heavy industries like steel and cement manufacturing.
Hydrogen Market
Key Report Findings
By the end of 2030, the hydrogen market size is projected to reach US$328 billion. The global sustainability and clean energy drives are paving the way for the establishment of a reliable futuristic hydrogen ecosystem. Hydrogen generation has yet to attain the production capacity required to cater to mainstream application areas such as fuel cell vehicles. Governments play a crucial role in building up the hydrogen industry. On-site captive production will continue to lead, constituting over 75% of the total hydrogen market revenue. Asia Pacific, led by China, maintains dominance with more than 40% share of the overall market value. Growth Drivers
Governments Accelerate their Journey Toward Sustainability
In recent years, an increasing number of countries have made commitments to achieve net-zero emissions. The rise of environmental, social, and corporate governance (ESG) initiatives is drawing attention to clean energy markets, including hydrogen. Governments worldwide have been formulating regulatory policies that promote sustainability by reducing carbon footprints. Notably, the landmark Paris Agreement serves as a guiding framework for these efforts.
According to the Hydrogen Council, as of early 2021, over 30 countries have released hydrogen roadmaps and have national hydrogen strategies in place. Governments across the globe have also committed substantial public funding to support decarbonization through hydrogen technologies. More than 200 large-scale projects, with 85% located in Europe, Asia, and Australia, have been announced throughout the hydrogen value chain. These projects have a total value exceeding $300 billion until 2030. Of this investment, $80 billion is currently considered mature, indicating that these projects are in the planning stage, have reached final investment decisions, or are under construction, already commissioned, or operational.
Some energy giants are diversifying into the clean energy sector. Utilities like NextEra, Iberdrola, and Uniper have recently ventured into green hydrogen, challenging the dominance of oil companies such as Shell, BP, Equinor, and ACWA Power. The growing popularity of hydrogen power, driven by the electric vehicle (EV) boom, presents one of the emerging opportunities for hydrogen fuel. Hydrogen power is exceptionally energy-efficient and eliminates the need for lengthy charging times, making it an attractive option. The Toyota Mirai serves as an early example of hydrogen fuel cell technology in EVs.
Sustainability Targets Push Blue and Green Hydrogen Production
The global hydrogen market can be categorized into three types based on the source: grey hydrogen (without CCS), blue hydrogen (with CCS), and green hydrogen. Grey hydrogen, accounting for over 90% of the market in 2022, is produced from fossil fuels such as unabated natural gas, coal, and oil, without carbon capture and storage (CCS) facilities. Blue hydrogen, on the other hand, is produced from captured CO2 from CCU (carbon capture and utilization) facilities. Lastly, green hydrogen is produced through the electrolysis of water.
While grey hydrogen dominates the current market, blue and green hydrogen are expected to experience significant growth from 2023 to 2030, with CAGRs of 24.1% and 17.8%, respectively. Blue hydrogen, generated through methods like steam methane reforming (SMR) or autothermal reforming (ATR), remains the most cost-effective method of hydrogen production. Blue hydrogen's emissions, including carbon dioxide and carbon monoxide, can be captured and stored underground via industrial CCS facilities.
Hydrogen Generation Market Has a Long Way to Go Before Mainstream Adoption for Fuel Cell Vehicles
In terms of application, hydrogen finds use in various industries such as refining, ammonia production, methanol production, iron and steel manufacturing, chemical production, transport, and others. Refining currently dominates the hydrogen market, constituting 48% of the market share by value. Although the majority of hydrogen is utilized in industrial processes, the transport segment is projected to witness significant growth by 2030 due to the increasing demand for hydrogen fuel cell vehicles.
Fuel cells, despite not being completely energy efficient, are gaining prominence across industries such as oil refining, ammonia production, methanol production, and steel manufacturing. Currently, hydrogen supply relies heavily on fossil fuels. However, the potential for emission reduction through clean hydrogen is significant.
On the other hand, hydrogen generation for fuel cell vehicles and other clean energy applications is progressing at a relatively slow pace. Widespread adoption is needed in sectors where hydrogen is still underutilized, such as transport, building and construction, and power generation.
Overview of Key Segments
On-site Hydrogen Captive Production to Lead Till 2030
Hydrogen generation can be categorized into three types: on-site, by-product, and captive. Captive production, which constituted 75% of the market share by value in 2022, refers to hydrogen produced exclusively for on-site consumption within the same facility. In contrast, merchant plants supply hydrogen to the larger market, with only a small fraction of their capacity available for this purpose. Captive production often serves a single customer or an industrial cluster and is usually produced in close vicinity or distributed through pipelines. By-product hydrogen, either vented to the atmosphere or used for internal processes or on-site energy generation, can be further purified and sold to merchants for resale. Nearby captive industries also directly purchase by-product hydrogen.
Growth Opportunities Across Regions
Europe to Register the Highest Growth by 2030
China currently stands as the world's largest consumer of hydrogen, followed by the United States and the Middle East. In terms of hydrogen generation, Asia Pacific dominated the market in 2022, accounting for over 40% of the overall share. China alone represents more than 60% of the hydrogen demand in the Asia Pacific region. In 2022, around 680 proposals for large-scale hydrogen projects, with a total investment value of US$240 billion until 2030, were made. However, only 10% of these projects (equivalent to US$22 billion) have reached a final investment decision.
Looking ahead, Europe and North America are expected to witness strong growth in the hydrogen market by 2030. These regions are leading in terms of planned and feasible hydrogen generation projects. By 2030, hydrogen generation projects in Europe and North America are projected to account for over 60% of the total announced clean hydrogen supply volumes, with Europe having the highest volumes (around 8 million tons in announced supply).
Investments in the hydrogen market have more than tripled since 2021, with a focus on both existing and new industry end-uses. Clean hydrogen is replacing fossil-based ("grey") hydrogen in existing industrial uses, contributing to emission reduction. Notable investments are being made in the mobility sector, new industry end-uses like steelmaking, ammonia production, and refining.
Global Hydrogen Generation Market: Key Players
Several key players are driving the growth and development of the global hydrogen market. Royal Dutch Shell, Totalenergies, Adani Green, Air Liquide, Air Products, Bloom Energy Corp., CTP Hydrogen, Chevron Hydrogen Company LLC, Doosan Fuel Cell, FuelCell Energy, Inc., Linde Plc, Plug Power, Inc., and others are among the significant contributors to the industry.
Notable Developments
In July 2022, Shell Plc commenced the construction of a renewable hydrogen plant in the Netherlands. Once operational by 2025, it will become Europe's largest renewable hydrogen facility. In June 2022, Adani and TotalEnergies formed a strategic partnership to create the world's largest green hydrogen ecosystem. TotalEnergies acquired a 25% minority interest in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL). In conclusion, the hydrogen market presents a wealth of opportunities for clean energy transitions and sustainable development. With the backing of governments and a growing focus on environmental commitments, hydrogen has the potential to revolutionize various industries. As technologies mature and awareness increases, hydrogen is poised to play a pivotal role in shaping the future of the clean energy sector.
Hydrogen, with its versatile applications and potential for future expansion, has emerged as a promising subset of the clean energy sector. As the world seeks sustainable alternatives, the global market for hydrogen, valued at approximately US$185 billion, is poised for significant growth. In this article, we will delve into the various aspects of the hydrogen market and explore its potential for clean energy transitions.
Market Analysis in Brief
Hydrogen, being produced on a commercial basis today, has fostered the development of a thriving global industry that caters to industrial users. However, despite its current utilization accounting for less than 5% of the world's energy, hydrogen's full potential for clean energy transitions remains largely untapped. With aggressive government programs supporting its adoption, hydrogen holds the promise of contributing up to a quarter of the world's energy consumption by 2050. Moreover, key hydrogen technologies, such as direct reduced iron (DRI) for steel manufacturing, the use of ammonia in shipping vessels, and the application of synthetic fuels in aviation, are still in the early stages of commercial availability. The future could witness trucks, airplanes, and ships being powered by hydrogen. Additionally, hydrogen can be employed in diverse areas, including fertilizer production, home heating, power generation, electricity network stability, and heavy industries like steel and cement manufacturing.
Hydrogen Market
Key Report Findings
By the end of 2030, the hydrogen market size is projected to reach US$328 billion. The global sustainability and clean energy drives are paving the way for the establishment of a reliable futuristic hydrogen ecosystem. Hydrogen generation has yet to attain the production capacity required to cater to mainstream application areas such as fuel cell vehicles. Governments play a crucial role in building up the hydrogen industry. On-site captive production will continue to lead, constituting over 75% of the total hydrogen market revenue. Asia Pacific, led by China, maintains dominance with more than 40% share of the overall market value. Growth Drivers
Governments Accelerate their Journey Toward Sustainability
In recent years, an increasing number of countries have made commitments to achieve net-zero emissions. The rise of environmental, social, and corporate governance (ESG) initiatives is drawing attention to clean energy markets, including hydrogen. Governments worldwide have been formulating regulatory policies that promote sustainability by reducing carbon footprints. Notably, the landmark Paris Agreement serves as a guiding framework for these efforts.
According to the Hydrogen Council, as of early 2021, over 30 countries have released hydrogen roadmaps and have national hydrogen strategies in place. Governments across the globe have also committed substantial public funding to support decarbonization through hydrogen technologies. More than 200 large-scale projects, with 85% located in Europe, Asia, and Australia, have been announced throughout the hydrogen value chain. These projects have a total value exceeding $300 billion until 2030. Of this investment, $80 billion is currently considered mature, indicating that these projects are in the planning stage, have reached final investment decisions, or are under construction, already commissioned, or operational.
Some energy giants are diversifying into the clean energy sector. Utilities like NextEra, Iberdrola, and Uniper have recently ventured into green hydrogen, challenging the dominance of oil companies such as Shell, BP, Equinor, and ACWA Power. The growing popularity of hydrogen power, driven by the electric vehicle (EV) boom, presents one of the emerging opportunities for hydrogen fuel. Hydrogen power is exceptionally energy-efficient and eliminates the need for lengthy charging times, making it an attractive option. The Toyota Mirai serves as an early example of hydrogen fuel cell technology in EVs.
Sustainability Targets Push Blue and Green Hydrogen Production
The global hydrogen market can be categorized into three types based on the source: grey hydrogen (without CCS), blue hydrogen (with CCS), and green hydrogen. Grey hydrogen, accounting for over 90% of the market in 2022, is produced from fossil fuels such as unabated natural gas, coal, and oil, without carbon capture and storage (CCS) facilities. Blue hydrogen, on the other hand, is produced from captured CO2 from CCU (carbon capture and utilization) facilities. Lastly, green hydrogen is produced through the electrolysis of water.
While grey hydrogen dominates the current market, blue and green hydrogen are expected to experience significant growth from 2023 to 2030, with CAGRs of 24.1% and 17.8%, respectively. Blue hydrogen, generated through methods like steam methane reforming (SMR) or autothermal reforming (ATR), remains the most cost-effective method of hydrogen production. Blue hydrogen's emissions, including carbon dioxide and carbon monoxide, can be captured and stored underground via industrial CCS facilities.
Hydrogen Generation Market Has a Long Way to Go Before Mainstream Adoption for Fuel Cell Vehicles
In terms of application, hydrogen finds use in various industries such as refining, ammonia production, methanol production, iron and steel manufacturing, chemical production, transport, and others. Refining currently dominates the hydrogen market, constituting 48% of the market share by value. Although the majority of hydrogen is utilized in industrial processes, the transport segment is projected to witness significant growth by 2030 due to the increasing demand for hydrogen fuel cell vehicles.
Fuel cells, despite not being completely energy efficient, are gaining prominence across industries such as oil refining, ammonia production, methanol production, and steel manufacturing. Currently, hydrogen supply relies heavily on fossil fuels. However, the potential for emission reduction through clean hydrogen is significant.
On the other hand, hydrogen generation for fuel cell vehicles and other clean energy applications is progressing at a relatively slow pace. Widespread adoption is needed in sectors where hydrogen is still underutilized, such as transport, building and construction, and power generation.
Overview of Key Segments
On-site Hydrogen Captive Production to Lead Till 2030
Hydrogen generation can be categorized into three types: on-site, by-product, and captive. Captive production, which constituted 75% of the market share by value in 2022, refers to hydrogen produced exclusively for on-site consumption within the same facility. In contrast, merchant plants supply hydrogen to the larger market, with only a small fraction of their capacity available for this purpose. Captive production often serves a single customer or an industrial cluster and is usually produced in close vicinity or distributed through pipelines. By-product hydrogen, either vented to the atmosphere or used for internal processes or on-site energy generation, can be further purified and sold to merchants for resale. Nearby captive industries also directly purchase by-product hydrogen.
Growth Opportunities Across Regions
Europe to Register the Highest Growth by 2030
China currently stands as the world's largest consumer of hydrogen, followed by the United States and the Middle East. In terms of hydrogen generation, Asia Pacific dominated the market in 2022, accounting for over 40% of the overall share. China alone represents more than 60% of the hydrogen demand in the Asia Pacific region. In 2022, around 680 proposals for large-scale hydrogen projects, with a total investment value of US$240 billion until 2030, were made. However, only 10% of these projects (equivalent to US$22 billion) have reached a final investment decision.
Looking ahead, Europe and North America are expected to witness strong growth in the hydrogen market by 2030. These regions are leading in terms of planned and feasible hydrogen generation projects. By 2030, hydrogen generation projects in Europe and North America are projected to account for over 60% of the total announced clean hydrogen supply volumes, with Europe having the highest volumes (around 8 million tons in announced supply).
Investments in the hydrogen market have more than tripled since 2021, with a focus on both existing and new industry end-uses. Clean hydrogen is replacing fossil-based ("grey") hydrogen in existing industrial uses, contributing to emission reduction. Notable investments are being made in the mobility sector, new industry end-uses like steelmaking, ammonia production, and refining.
Global Hydrogen Generation Market: Key Players
Several key players are driving the growth and development of the global hydrogen market. Royal Dutch Shell, Totalenergies, Adani Green, Air Liquide, Air Products, Bloom Energy Corp., CTP Hydrogen, Chevron Hydrogen Company LLC, Doosan Fuel Cell, FuelCell Energy, Inc., Linde Plc, Plug Power, Inc., and others are among the significant contributors to the industry.
Notable Developments
In July 2022, Shell Plc commenced the construction of a renewable hydrogen plant in the Netherlands. Once operational by 2025, it will become Europe's largest renewable hydrogen facility. In June 2022, Adani and TotalEnergies formed a strategic partnership to create the world's largest green hydrogen ecosystem. TotalEnergies acquired a 25% minority interest in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL). In conclusion, the hydrogen market presents a wealth of opportunities for clean energy transitions and sustainable development. With the backing of governments and a growing focus on environmental commitments, hydrogen has the potential to revolutionize various industries. As technologies mature and awareness increases, hydrogen is poised to play a pivotal role in shaping the future of the clean energy sector.
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https://vocus.cc/article/64b74764fd89780001bb02c0
https://www.itsmytime.in/news/hydrogen-market-is-expected-to-reach-us-328-bn-by-2030-132449
https://www.reddit.com/r/somethingimade/comments/153i2gm/hydrogenmarketisontracktoregister_an/
https://community.she.com/topic/2527978/hydrogen-market-is-anticipated-to-register-a-cagr-of-7-6-for-the-period-from-2023-to-2030
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