21-10-2022

Blue Hydrogen Market revenue to reach US$4.5 Bn by 2030

As per the report by Global Market Insights, Inc. “Worldwide Blue Hydrogen Market was valued USD 1 billion in 2021 and will surpass a revenue collection of USD 4.5 billion by 2030 with an annual growth rate of 11% over 2022 to 2030.”

The market growth is driven by the rising popularity of this technology worldwide. Lately, several global industries and regulatory organizations have begun to plan the inclusion of hydrogen in their energy mixes. According to International Renewable Energy Agency studies, green hydrogen is two to three times more expensive than blue hydrogen. Similarly, the intervention of major oil firms in the creation of blue hydrogen is demonstrating its potential as an effective source of energy.

Blue hydrogen calls for a wide range of applications in a variety of energy-consuming sectors. In fact, hydrogen fuel is expected to alter the energy business, making it more sustainable and ecologically benign. In light of these trends, along with numerous energy consulting organizations worldwide, significant players in the energy sector and several governments are taking an active interest and investing heavily in blue hydrogen. For instance, in October 2021, John Bel Edwards, Louisiana Governor, and Air Products, a renowned American chemical and gas company, announced the construction of a $4.5 billion clean energy complex in Louisiana, to position the state as a leader in the U.S. clean energy transition.

Enlisted below are 3 prominent trends likely to propel the blue hydrogen market share in the coming years-

Rising need for decarbonization of petroleum refineries

In the last couple of years, global economies are under pressure to consider energy market possibilities in order to satisfy the Paris Climate Agreement's long-term temperature goals. In consequence, blue hydrogen is registering a higher demand for its carbon neutral properties as the emissions are not diffused in the atmosphere. According to research by the World Resources Institute, using new technologies, such as fuel shifting to clean hydrogen, heat electrification, utilization and storage of carbon capture, and heat electrification can deeply decarbonize refineries.

Driven by this growing potential of hydrogen on a wider commercial scale, industry participants are essaying several initiatives that favorably affect the decarbonization of the energy sector. In November 2021, twenty-eight firms, including oil titans BP, Shell, Equinor, and TotalEnergies, announced a new global initiative at COP26, to promote the substitution of extremely polluting grey hydrogen with lower-carbon hydrogen.

Huge investments in blue hydrogen market in the MEA region

Considering the strong presence of natural gas reserves, infrastructure facilities, and the surging investments due to direct decision-making, the Gulf nations have announced ambitious plans for a hydrogen economy, highlighting the potential for blue hydrogen.

 Moreover, blue hydrogen is calling for significant demand as it provides these nations with diversification as it allows the preservation of economic and political influence even in a decarbonized world. Citing an instance, the UAE declared in November 2021 that it was working on a "Hydrogen Roadmap" to position the country as a hydrogen leader. It also disclosed plans to establish new value chains for the export of low-carbon hydrogen and its derivatives, along with the manufacturing of steel and jet fuel using hydrogen.

Widespread adoption of autothermal reforming technology

The blue hydrogen market will witness exponential growth from autothermal reforming technology as it captures more CO2 and is more cost-effective. It hence offers enormous potential for debottlenecking current facilities as well as constructing new and efficient production plants. As carbon capture is included in the process of autothermal reforming, it necessitates the adoption of blue hydrogen for production. To illustrate, in September 2021, the development arm of Air Products & Chemicals Inc. announced plans to establish hydrogen plants in Louisiana and Alberta using autothermal reforming technology.

Considering the wide potential of hydrogen for applications on a wider commercial scale, various key blue hydrogen market participants are favorably deploying several strategies for the decarbonization of the energy sector. This technology is also emerging as one of the most feasible solutions as opposed to fossil fuels in this modern era.