The global green hydrogen market is expected to expand due to the growing usage of green hydrogen in the chemical industry for the manufacturing of fertilizers and ammonia.
Additionally, the worldwide green hydrogen market is growing due to the advancement of electrolysis technology and the high demand from fuel cell electric vehicles and the power sector…
According to a new analysis conducted by the strategic consulting and market research firm BlueWeave Consulting, the worldwide green hydrogen market is expected to reach USD 445.1 million in 2021 and USD 6,836.0 million by 2027, growing at a CAGR of 57.7 percent over the forecast period (2021-2027). Numerous government initiatives aiming at reducing carbon emissions and ultimately reaching zero contribute to the growth of the green hydrogen sector. Hydrogen derived from green plants is regarded as one of the most promising energy sources, which is why it is being employed to address global energy needs. In light of the causes described above, the demand for green hydrogen is increasing, resulting in the global growth of the green hydrogen market.
In October 2021, the Adani Group, a worldwide leader in transportation logistics and energy utilities, announced its intention to become one of the world’s largest green hydrogen generators, perhaps assisting India in becoming the world’s cheapest hydrogen producer. Adani Group wants to invest more than USD 20 billion in renewable energy generation over the next decade. Adani Green Energy, the group’s renewable energy subsidiary, intends to increase its capacity in the next four years after reaching its first target of 25 gigatonnes four years ahead of schedule.
The European Hydrogen Backbone is a European Union program aimed at enhancing Europe’s dedicated hydrogen transport infrastructure. By 2040, the company anticipates a hydrogen network of 39,700 kilometers, with further expansion projected after that.
This grid has 21 countries. Two European transmission system operators representing 11 European nations have joined the European hydrogen backbone effort. Total investment in infrastructure modernization is anticipated to be roughly USD 45 billion.
Today’s hydrogen infrastructure maps reflect the views of 23 gas transmission system operators (TSOs) on how infrastructure will evolve to meet decarburization targets. These techniques have aided in the market’s quick rise.
Two key drivers driving the green hydrogen market are increased investment in the development of green hydrogen and the goal of reaching net-zero net carbon emissions. For example, Mauritania and Chariot’s UK oil and gas firm have signed a memorandum of understanding (MoU) to construct a 10GW hydrogen project to progress the enormous Nour wind/solar/H2 project. Chariot intends to use the lands to construct a 10GW solar and wind energy system that will power electrolyzers that generate green hydrogen.
NextEra revealed intentions to double down on green hydrogen in September 2021, with plans to build a 500-megawatt wind farm to power a hydrogen fuel cell startup. The Florida-based energy giant is also increasing its wind portfolio, having acquired a 100-megawatt wind farm in California for USD 280 million through its NextEra Energy Partners limited partnership. Thus, increasing investment in green hydrogen production and increased usage of green hydrogen by end-user industries have fueled the green hydrogen market’s rise.
The green hydrogen market is divided according to renewable energy sources, including wind energy, solar energy, and others. Solar energy is expected to dominate the worldwide green hydrogen market in 2021. Solar energy is gaining traction as a low-cost energy source for manufacturing green hydrogen.
Solar energy is viewed as a lucrative prospect for the direct generation of green hydrogen by businesses worldwide. Solar energy can be used to power electrolyzers that convert water to hydrogen. As a result, the solar energy industry’s increasing investment in green hydrogen production has encouraged the green hydrogen market’s growth.
For example, Octopus Energy, a renewable energy provider based in the United Kingdom, and RES, a renewable energy company, have partnered to spend USD 4.1 billion in renewable hydrogen projects throughout the country by 2030. The two companies will collaborate to establish renewable hydrogen production facilities powered by wind and solar energy across the United Kingdom, which they claim will enable industrial hydrogen consumers to switch to green supply at no additional cost, thereby protecting clients from volatile fossil fuel markets.
Numerous businesses worldwide have been impacted by the global pandemic caused by COVID-19. Inadequate supplies have impacted a variety of supply chains, logistics, raw material providers, and miners, to name a few. COVID-19 has had a huge impact on the world’s energy networks, decreasing investments and posing a threat to the spread of clean energy technology. In the short term, tiny yet creative enterprises that sell hydrogen and fuel cell technologies are projected to experience severe liquidity restrictions as sales decrease dramatically, resulting in layoffs or perhaps insolvency. In light of COVID-19 and the world’s worst oil crisis in history, governments worldwide have been forced to reconsider previously planned climate change programs and initiatives.
The pandemic has also had a detrimental effect on the global market for green hydrogen. Numerous enterprises, commercial buildings, industries, and other facilities have been closed as a result of various countries’ nationwide lockdowns.
Due to the lack of traffic on the highways, the vehicle industry, which is the primary use for green hydrogen, was harmed. Additionally, a decline in automotive sales impacted the entire green hydrogen market.
However, the worldwide hydrogen market is thriving post-pandemic. Nonetheless, the global market for hydrogen has exploded in the aftermath of the pandemic. Government attempts to generate clean, green energy by 2050, together with the presence of significant players in the green hydrogen production market, are projected to fuel market expansion in the coming years.
The green hydrogen market is segmented geographically into five regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America. Europe is expected to dominate the green hydrogen market in 2021 and is likely to continue to do so throughout the forecast period. The European green hydrogen market is expanding primarily as a result of increased investment in green hydrogen producing plants.
In October 2021, Ineos, a UK-based plastics, oil, and gas corporation, announced a USD 2.3 billion commitment to accelerate green hydrogen production across Europe. The company wants to build new electrolysis units in Norway, Germany, and Belgium over the next decade to manufacture zero-carbon green hydrogen. Shell will inaugurate Europe’s largest PEM (Polymer electrolyte membrane) green hydrogen electrolyzer in June 2021. The fully functioning plant is the world’s first refinery to employ this technology.