The value of the global green hydrogen market will increase rapidly in the coming years, according to a renowned US market researcher based in Washington DC
Wednesday, Beneficial market research released data from its recent report on an alternative energy source that continues to grow in popularity.
According to the company, the aforementioned market was valued at just $374.17 million last year and is expected to be worth $8.7 billion by 2028, observing an astonishing compound annual growth rate of 48. 19% over the forecast period 2022-2028.
According to Vantage, the main market drivers will be an ever-increasing demand for alternative energy resources, rising environmental concerns globally and the price of electricity.
“The falling cost of clean electricity should make green hydrogen production more economically attractive,” the VMR report says.
The company also says that several technologies and components of the hydrogen value chain have been implemented in small-scale production and will soon be ready for commercialization.
According to the Hydrogen Council, the price of electrolysis (the process of separating water into hydrogen and oxygen) has fallen by 60% since 2010. Additionally, the price of fuel cells has fallen by 70% since 2006, according to the United States. Ministry of Energy.
Renewable technologies will increase demand for “green” hydrogen
The ambitious decarbonization and carbon neutrality targets and plans unveiled by many governments around the world, such as the recent Partnership for Accelerating Clean Energy (PACE) agreement signed on Tuesday by the United States and the Emirates United Arab Emirates, will likely lead to large-scale investment, inherently accelerating consumption. clean hydrogen.
Vantage says the European Union plans to become carbon neutral by 2050 and China has also announced progressive targets to reduce carbon emissions under the Paris Agreement international treaty on climate change . In addition, around 40 governments around the world have implemented carbon prices and fossil fuel taxes or plan to do so in the near future.
Main findings of the report
The power generation segment of the market is expected to have a CAGR of 50% during the forecast period owing to an increasing demand for onsite electrolyser installations in the industrial sector.
The chemical segment of the market is expected to have a CAGR of 38.91% throughout the forecast period, as the chemical industry is a major producer of by-product hydrogen.
Finally, Asia-Pacific is expected to grow at a CAGR of 52.74% by 2028 due to an increasing number of government economic policies aimed at advancing the adoption of green hydrogen.
Europe is expected to dominate the market
Vantage says Europe has the largest global market share and will develop its infrastructure at a rapid pace. Large investments in research and development for the hydrogen industry are expected to propel market growth in the continent.
A partnership born between the European Union and an organization called Research Hydrogen Europe – a so-called international non-profit consortium made up of 91 universities and other technology and research organizations from 26 countries – will help foster a productive business environment for the market in Europe.
The green hydrogen market is also expected to witness significant growth in North America and Asia-Pacific during the forecast period, partly attributed to green energy initiatives in countries such as China, India , Japan and the United States.
Recent Industry Developments
June has been an important month for the industry this year for three reasons:
Siemens Energy SA (ENR: Xetra) began developing green hydrogen as a fuel for the aerospace industry, prioritizing affordability for businesses.
Tunisia unveiled a development plan for a green hydrogen program in partnership with the German Ministry for Economic Cooperation and Development. The objective of the program is to generate green ammonia and reduce the import of fertilizers.
Aerial products (NYSE: APD) and Gunvor Petroleum Rotterdam have reached an agreement to develop an import terminal to supply the Netherlands with green hydrogen.
The major market players are Toshiba Energy Systems & Solutions Corporation, Nel ASA (OSE: NEL), Liquid air (OTCMKTS: AIQUY), Linde (NYSE:LIN), Cummins inc. (NYSE: CMI), Guangdong Nation-Synergy Hydrogen Power Technology Co., Ltd. Aerial products (NYSE: APD), H&R Ölwerke Schindler GmbH, Siemens Energy AG (ENR: Xetra) and Wind to Gas Energy GmbH & Co. KG.
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