[180 Pages Report] The Green Hydrogen Market size was estimated at USD 2.76 billion in 2023 and expected to reach USD 3.76 billion in 2024, at a CAGR 39.84% to reach USD 28.89 billion by 2030.
Green hydrogen is made using renewable energy or low-carbon power sources; it exhibits significantly lower emissions than hydrogen derived from fossil fuels without carbon capture. Green hydrogen can be reserved and transported as a versatile energy vector for various applications across different sectors, including transportation, industry, and power generation. It is used directly in fuel cells to generate electricity for vehicles or combined with captured CO2 to produce synthetic fuels. In enterprises such as steel and chemical manufacturing, where high-temperature heat is required, green hydrogen can serve as a low-emission substitute for fossil fuels traditionally used in these processes. Green hydrogen is experiencing increased demand due to the growing need for renewable energy resources. Manufacturers in the ammonia and fertilizer industry are increasingly adopting green hydrogen. The growth of green hydrogen is driven by mounting environmental concerns and regulations on carbon emissions. While safety concerns are associated with handling and transporting green hydrogen, government investments and subsidies are promoting the use of clean fuel. Along with these, extensive research and development efforts are underway worldwide to harness the potential of green hydrogen as a sustainable energy carrier. As innovation continues to drive technological advancements and reductions in production costs, green hydrogen is expected to play a pivotal role in the transition toward a low-carbon future.
Europe and the Americas are witnessing an increase in development across the production of green hydrogen. In recent years, both regions have witnessed increased investments in green hydrogen production and the development of supportive clean energy policies. Advances in research and development for green hydrogen have made it more cost-effective and widely available. The European Union has been particularly proactive in adopting green hydrogen. The European Commission has identified green hydrogen as a key element of its Green Deal agenda, setting ambitious targets for using renewable energy sources and supporting businesses willing to invest in green hydrogen technology. Additionally, several European countries have developed specific strategies to produce and use this energy source, committing significant resources to promote its growth. In the Americas, countries such as Canada, Mexico, Chile, and Brazil focus on exploring the potential of green hydrogen. Canada is investing heavily in infrastructure to produce electricity from renewable sources such as solar and wind power, which can then be used with electrolysis technology to produce green hydrogen. India and China are witnessing a significant increase in the adoption of green hydrogen for manufacturing ammonia and fertilizers. Their commitment to sustainable growth drives this shift across developing countries to reduce greenhouse gas emissions in line with global climate targets. Furthermore, several notable collaborations between key industry players have been observed to capitalize on the market potential offered by green hydrogen technology. Other key partnerships are emphasized in research & development efforts and commercial-scale deployment strategies.
Alkaline electrolyzers are the most established and widespread technology for green hydrogen production. They split water into its constituent elements, oxygen, and hydrogen, using an alkaline solution as the electrolyte. In these systems, a current is passed through water containing dissolved potassium hydroxide or sodium hydroxide, leading to hydrogen gas formation at the cathode and oxygen gas at the anode. Alkaline electrolyzers have been commercially used for decades and offer several advantages, including low capital costs, high system efficiency, robustness, and extended operating lifetimes. However, they require large-scale installations for optimal performance and can be sensitive to variations in current density. Polymer electrolyte membrane (PEM) electrolyzers represent a recent advancement in green hydrogen technology. These systems utilize a solid polymer membrane as an electrolyte instead of an alkaline solution. PEM electrolyzers are more compact due to their higher current densities and exhibit faster response times to changes in load conditions. PEM technology has high proton conductivity, lower gas permeability, and lower proton exchange membrane thickness and allows flexible integration with intermittent renewable energy sources such as solar and wind power. Furthermore, PEM electrolyzers produce higher-purity hydrogen gas without requiring additional purification steps, majorly employed for applications requiring stringent quality standards, such as fuel cell vehicles or industrial processes.
Wind and solar energy generate electricity used in electrolysis to produce green hydrogen. Wind energy is a crucial renewable source for electrolyzers producing green hydrogen, as its intermittent nature can be managed through energy storage and grid-balancing technologies to ensure a stable electricity supply for hydrogen production. Moreover, solar energy is another significant renewable source used to power electrolyzers for green hydrogen production. Excess solar power generated during sunny periods can produce hydrogen for later use with the help of energy storage solutions. Solar energy capacity factors vary depending on location, time of day, and weather conditions.
Pipelines have been established as the conventional means of transporting gaseous substances such as natural gas. Using pipelines for green hydrogen transportation requires new infrastructure and retrofitting existing natural gas pipelines. This approach benefits from lower transportation costs per unit over long distances and continuous supply with minimal interruptions. However, in terms of capital expenditure, constructing new pipelines and retrofitting existing ones involve significant upfront investment. Cargo transportation involves shipping green hydrogen using carriers such as ships, trucks, and trains. For instance, liquid organic hydrogen carriers (LOHC) technology has emerged as an alternative to traditional compressed and liquefied hydrogen storage methods due to its lower energy requirements and reduced transport costs compared to high-pressure storage tanks. Nonetheless, cargo transportation generally has higher operating costs due to the necessity for regular refueling and maintenance.
Green hydrogen is utilized for grid balancing and storage in the power generation sector, effectively incorporating solar photovoltaic (PV) and wind, variable renewable energy technologies. It enables the decarbonization of electricity production by substituting natural gas in gas turbines or combined-cycle plants with H2-blended fuels. Green hydrogen is observed as a promising alternative fuel for numerous modes of transportation, including cars, buses, trucks, trains, ships, and even aircraft. In transportation applications, hydrogen is used in fuel cell electric vehicles (FCEVs) and hydrogen internal combustion engine vehicles (HICEVs). FCEVs running on hydrogen emit water vapor, making them zero-emission vehicles and contributing to efforts to combat air pollution and reduce the transportation sector's carbon footprint. Harnessing green hydrogen's potential can revolutionize power generation and transportation sectors toward a more sustainable future while providing low-carbon solutions contributing to climate change mitigation efforts.
The market dynamics represent an ever-changing landscape of the Green Hydrogen Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Green Hydrogen Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Green Hydrogen Market.
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Green Hydrogen Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.
The value chain of the Green Hydrogen Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.
The pricing analysis comprehensively evaluates how a product or service is priced within the Green Hydrogen Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Green Hydrogen Market.
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Green Hydrogen Market.
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Green Hydrogen Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.
The trade analysis of the Green Hydrogen Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.
The regulatory framework analysis for the Green Hydrogen Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Green Hydrogen Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Green Hydrogen Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Nikola And Fortescue Future Industries Commit To Creating American Green Energy Jobs With Acquisition Of Nikola's Phoenix Hydrogen Hub
Fortescue Future Industries (FFI) and Nikola Corporation have announced that FFI has acquired the Phoenix Hydrogen Hub (PHH) project near Phoenix in Buckeye, Arizona. The companies signed a MoU in January 2023 to collaborate on the co-development of large-scale green hydrogen production facilities. FFI provides the capital and resources to fully develop PHH, which is expected to commence hydrogen production by mid-decade. The agreement aims to support Nikola's Class 8 zero-emission trucks through a hydrogen supply agreement. [Published On: 2023-07-19]
Receives purchase order for 40 MW electrolyser equipment from Bondalti
Nel Hydrogen Electrolyser AS has entered into a contract with Bondalti for the H2 Enable project in Estarreja, Portugal, securing 40 MW of alkaline electrolyzer equipment. Wood has been chosen as the EPC for the FEED study, while the electrodes are manufactured at the Herøya facility in Norway. Bondalti aims to incorporate green hydrogen into its value chain, aligning with European climate and energy targets to decarbonize its operations. [Published On: 2023-07-17]
Statkraft supplies Air Liquide with wind power for large scale green hydrogen electrolyser
A Norwegian state-owned company provides Air Liquide with a wind-energy portfolio for a duration of three years starting in 2024. Air Liquide intends to use renewable power to produce hydrogen at its 20 MW "Trailblazer" plant in Oberhausen, Germany. The availability of such power enables Air Liquide to certify the hydrogen as renewable and meet REDII compliance, thereby allowing customers to market products with a lower carbon footprint. The supply of green electricity facilitates the transformation of industrial processes, consequently reducing CO2 emissions in Germany. [Published On: 2023-06-15]
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Green Hydrogen Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
The report delves into recent significant developments in the Green Hydrogen Market, highlighting leading vendors and their innovative profiles. These include Adani Green Energy Limited, Air Liquide S.A., Air Products and Chemicals, Inc., Avaada Energy Pvt. Ltd., Ballard Power Systems Inc., Bloom Energy Corporation, Cummins Inc., CWP Global, ENAPTER s.r.l., ENGIE SA, Green Hydrogen Systems A/S, Hiringa Energy Limited, HydrogenPro ASA, Iberdrola, S.A., ITM Power PLC, Iwatani Corporation, Kawasaki Heavy Industries, Ltd., Larsen & Toubro Limited, Linde PLC, McPhy Energy S.A, Messer SE & Co. KGaA, Nel ASA, NEOM Company, Ohmium International, Inc., Plug Power Inc., PowerCell Sweden AB, Reliance Industries Limited, Saudi Arabian Oil Company, Siemens AG, Thermax Limited, Topsoe A/S, Toshiba Corporation, and Uniper SE.
This research report categorizes the Green Hydrogen Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Technology
- Alkaline Electrolyzer
- Polymer Electrolyte Membrane (PEM) Electrolyzer
- Renewable Source
- Solar Energy
- Wind Energy
- Distribution Channel
- Cargo
- Pipeline
- Application
- Power Generation
- Transportation
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Green Hydrogen Market, by Technology
- Green Hydrogen Market, by Renewable Source
- Green Hydrogen Market, by Distribution Channel
- Green Hydrogen Market, by Application
- Americas Green Hydrogen Market
- Asia-Pacific Green Hydrogen Market
- Europe, Middle East & Africa Green Hydrogen Market
- Competitive Landscape
- Competitive Portfolio
- List of Figures [Total: 24]
- List of Tables [Total: 368]
- List of Companies Mentioned [Total: 33]
Imagine a world in which energy can be stored or produced without the emission of polluting gases and through the utilization of renewable resources. The introduction of green hydrogen has brought this fantasy closer to reality. Green hydrogen is produced through the technique of electrolysis, fuelled by renewable energies such as wind or solar. While it is primarily used for energy storage, multiple industries have also started exploring its adoption. In the chemical industry, green hydrogen is used to manufacture ammonia and fertilizers, and in the petrochemical industry to produce petroleum products. Green hydrogen is indeed a multi-talented player!
The increasing public awareness about the impact of polluting fossil fuels and emissions has put intense heat on governments and private players to seek alternative energy generation and storage strategies. In December 2023, the UK government unveiled the covers on its plans to inject USD 507.8 million (GBP 400 million) into 11 major green hydrogen projects over the next three years.
By mixing AI/ML technologies and data analytics strategies in the recipe for energy generation, green hydrogen has the potential to reach new heights. For instance, AI algorithms can be used to search for hydrogen deposits, whereas digital twins can bestow crucial advice about when to start the hydrogen production plant. In November 2023, Multiverse Computing revealed that it had used the prowess of digital twin and quantum optimization to uplift the efficiency of green hydrogen production.
In order to safeguard the destiny of the beloved Mother Earth, governments, communities, and industries are envisioning a net-zero future, and green hydrogen will surely come to play a crucial role in this endeavor.
What is Green Hydrogen?
Green hydrogen is created using sustainable energy sources, including sun, wind, and hydropower. Unlike other types of hydrogen production methods, green hydrogen production emits zero carbon emissions. Green hydrogen is the key to unlocking decarbonization, driving the energy transition from fossil fuels.
How is Green Hydrogen Produced?
Green hydrogen production requires the use of electrolyzers, a technology that uses an electric current to split water into oxygen and hydrogen. The hydrogen produced is then collected and used as fuel for various end uses, including powering vehicles, heating homes and businesses, and generating electricity.
Renewable energy sources, such as wind and solar, power these electrolyzers by connecting them to the electrical grid, which provides renewable electricity to the electrolyzer. This electricity is then utilized to fuel the electrolysis process, which results in the production of green hydrogen.
Why is Green Hydrogen Essential for Meeting the Growing Demand for Renewable Energy?
In the quest to reduce carbon emissions, many industries are looking at alternative energy sources. Green hydrogen is an attractive option as it does not produce emissions and can be produced using renewable energy sources. As energy demand continues to grow, industries such as transportation and manufacturing need an alternative energy source that is reliable, scalable, and clean. Green hydrogen has the potential to meet these requirements, making it an essential part of the mix of renewable energy solutions.
Additionally, green hydrogen can help to address the intermittency challenge of renewable energy sources such as solar and wind. When renewable sources are not producing energy, excess energy can be stored as green hydrogen. This stored hydrogen can be used when renewable sources are not generating energy.
Green hydrogen is an attractive alternative energy source that has the potential to provide emissions-free energy for industries and transportation. Green hydrogen is an essential part of the mix of renewable energy solutions produced using renewable energy sources. As industries demand a reliable, scalable, clean energy source, green hydrogen offers a promising solution. With its potential to address the intermittency challenge of renewable energy sources, green hydrogen is set to play a significant role in meeting the growing demand for renewable energy.
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